The Indian government is reportedly mulling raising the retirement age of the managing directors (MDs) of public sector banks by two years to 62 years, from the current 60 years.
If this happens, the retirement age of the State Bank of Bank India (SBI) chairman could also increase from 63 years to 65 years, said one of the persons.
The move will favour the current SBI chairman Dinesh Khara, who will assume the age of 63 next year. Khara is yet to get an extension, as his three-year term ends in October.
At present, the retirement age of the heads of public sector banks, barring SBI, is 60 years, which could be raised to 62, said an official aware of the matter. The retirement age of the LIC chairman will also increase to 65 years.
Last year, the government raised the maximum term for MD and CEO to 10 years from five years. The rule is also applicable to full-time directors at public sector banks.
Veteran banker Khara assumed the role of the chairman of SBI in October 2020 for three years.
"There is a discussion to increase the age limit for retirement of chiefs of PSBs and Life Insurance Corp (LIC). Simultaneously, discussions are on for raising superannuation age for managing directors of PSBs to 62 years from 60 years," the official said.