Govt likely to extend retirement age for LIC Chairman to 65 years: Official

Currently the LIC Chairman retirement age is 62 years.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

The government is considering increasing the retirement age for the Chairman of the Life Insurance Corporation of India (LIC) and the Chairman of the State Bank of India (SBI) to 65 years, according to a senior finance ministry official. It is also likely that the tenure of all public sector bank (PSB) officials will be extended to 62 years.

"The proposal is to raise the retirement age to 65 years for both the LIC Chairman and SBI Chairman. Currently, the retirement age for LIC Chairman is 62 years. The proposal also includes extending the retirement age for all bank Managing Directors (MDs) by 1-2 years. For PSB MDs, the retirement age is currently 60 years, and it is proposed to extend it to 62 years," stated the official.

The current retirement age for the SBI Chairman is 63 years. However, this proposal is still under discussion. Typically, appointments to top positions in PSBs are for a 3-year term, which can be extended.

The retirement age of the LIC Chairman was previously extended to 62 years in 2021 through an amendment in the Life Insurance Corporation of India (Staff) Regulations, 1960.

On March 11, Siddhartha Mohanty was initially appointed as the interim Chairman of LIC, effective from March 14, for a three-month period after the term of MR Kumar was not extended. Later, Mohanty was confirmed as the LIC Chairman.

The primary aim of this proposal is to provide stability in leadership roles within the banks, especially since individuals occupying these top positions are often approaching retirement age.

For the SBI Chairman, Dinesh Khara, there is a likelihood of a 10-month extension to his tenure. His current term, as the head of the largest public sector bank in the country, is set to conclude in October 2023. If his term is extended by another 10 months, he would continue as the bank's chairman until August 2024, when he would reach the age of 63.

As per SBI's guidelines, the chairman should retire upon turning 63 years old. Dinesh Khara, a seasoned banker, assumed the role of SBI Chairman in October 2020 for a three-year term. Prior to his appointment as chairman, he held the position of managing director (global banking and subsidiaries) at the bank.