SBI chairman Dinesh Kumar Khara set to retire on August 28; quest for his successor begins

The Financial Services Institutions Bureau (FSIB), an independent body under the central government, will conduct interviews on May 21 to select a candidate for the chairman's position at the State Bank of India (SBI). Dinesh Kumar Khara will retire on August 28, and the new chairman will assume duties on the same day.

The leading contenders for the role are SBI’s three managing directors: CS Setty, Ashwini Kumar Tewari, and Vinay M Tonse. The fourth managing director, Alok Kumar Choudhary, will retire at the end of June.

Among the candidates, Setty is the most senior, with nearly 36 years at SBI, during which he managed the ₹1.49 lakh crore stressed assets portfolio during the peak of the bad loan crisis in 2018. Tewari, the youngest at 57, joined SBI as a probationary officer in 1991. Tonse, who took on the MD role in November 2023, oversees retail banking and joined the bank as a probationary officer in 1988.

The new chairman will have big shoes to fill, as under Khara’s leadership, SBI’s financial performance greatly improved. The share price increased significantly from ₹250 to ₹820, as noted by a former SBI official.

The bank reported a 23.98% rise in its fourth-quarter (Q4 FY24) profit, reaching ₹20,698 crore from ₹16,694.51 crore a year earlier. Interest earned grew by 19.46% to ₹1.11 lakh crore during the quarter. SBI’s operating profit for FY24 increased by 12.05% year-on-year to ₹93,797 crore, with Q4 FY24 operating profit rising by 16.76% year-on-year to ₹28,748 crore.

The net profit for FY24 is ₹61,077 crore, reflecting a 21.59% year-on-year growth after including the wage settlement and a one-time exceptional item of ₹7,100 crore. In Q4 FY24, the bank's total deposits increased by 11.13%, with CASA deposits rising by 4.25% year-on-year. The CASA ratio was 41.11% as of March 31, 2024.

In the fourth quarter of FY24, the bank's revenue increased significantly to ₹1,28,411.88 crore, up from ₹1,06,912.46 crore in the same period last year. The gross non-performing assets (NPAs) decreased by 7.32% to ₹84,276 crore in Q4 FY24 compared to ₹86,749 crore in the previous year. Similarly, the net NPAs decreased by 1.94% to ₹21,051.1 crore compared to ₹22,408 crore in the previous year.