Centre considers expanding retirement age of PSU bank MDs, CEOs

The government is mulling expansion of retirement age for managing directors (MDs) and chief executive officers (CEOs) within public sector banks. According to individuals with insight into the matter, the retirement age extension could span an additional two years beyond the present limit.

The the retirement age of the chairman of the State Bank of India (SBI) is presently set at 63, the retirement age for the SBI chairman might be expanded to 65.

This expansion of the retirement age could favour Dinesh Khara, the current SBI chairman, who is nearing 63. As his current three-year term is scheduled to conclude in October, this modification could see him carry on in his post for two more years.

Furthermore, a similar increase in retirement age to 65 is also being considered for the chairman of the Life Insurance Corporation (LIC).

"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 according to Economics Times.

The previous year, the government had already extended the maximum permissible term for MDs, CEOs, and full-time directors in public sector banks from five to ten years, indicating a shift in policy regarding their tenure.

This expansion of retirement age by the government for managing directors (MDs) and chief executive officers (CEOs) within public sector banks reflects a strategic move to ensure experienced leadership continuity.