India is considering raising the retirement age for the heads and chief executives of state-owned banks, which control more than 60% of the banking system’s assets, a government official said on Saturday.
The proposal under consideration is to raise the age limit for the chairman of the State Bank of India (SBI), India’s largest lender, from 63 to 65, and for the chief executive of other commercial banks from 60 to 62, the official said. said.
SBI is regulated by laws and regulations that are separate from other commercial bank regulations.
“The plan is still under consideration. A final decision has not been taken,” said the official, who declined to be named because discussions were ongoing.
The age limit for the heads of state banks is much lower than their counterparts in the private sector, who retire at age 70 and serve longer terms. Analysts often use this fact to explain the lack of sustainability in the strategies of state banks.
Commercial bank leaders are generally appointed for three years and can be extended depending on their performance.
Separately, the government plans to grant a 10-month extension to current SBI chair Dinesh Khara, who is expected to retire at the end of October, the official said.
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