Rajnish Kumar likely to get extension as SBI Chief, called for interview: Report

SBI Chairman Rajnish Kumar

The Centre may re-appoint current State Bank of India (SBI) Chairman Rajnish Kumar to the post for one more year after his tenure ends on October 7, 2020.

In an unprecedented move, the government has asked Kumar to appear for an interview for the same position – which signals preference for “tried and tested hands” in key posts as India faces one of its worst economic crisis, The Economic Times reported.

The SBI interview will be conducted online on August 18 or 19, people aware of the development told the newspaper. Among those under consideration include the bank’s three managing directors Arijit Basu, CS Shetty and Dinesh Kumar Khara, they added.

Moneycontrol could not independently verify the report.

Thus, speculation is rife that Kumar could retain the post after being called for the interview as the Centre would not want to “risk sending out a wrong signal.” Former Securities & Exchange Board of India Chief M Damodaran, had at his time, declined the interview for re-appointment.

SBI did not respond to queries raised by the newspaper.

In 2016, Kumar’s predecessor Arundhati Bhattacharya had also received an extension while SBI was completing its merger with five associate banks. Kumar, 62, took charge on October 7, 2017. As per statute, the chairman or CEO of a public sector bank can continue in service till the age of 65.

The development is also in line with previous actions during the year, where terms of SEBI chief Ajay Tyagi and Union Bank of India CEO Rajkiran Rai were extended. The latter, even without a formal interview, the report notes.

“If the current SBI chairman gets an extension, we believe markets will take it positively as we are going through an extraordinary times and situation," Lalitabh Srivastawa, banking analyst at Sharekhan Brokerage told the newspaper.