The Banks Board Bureau (BBB) on August 28 recommended Dinesh Kumar Khara for the post of SBI Chairman. The present incumbent Rajnish Kumar’s three-year term is ending on October 7.

The BBB, the headhunter for state-owned banks and financial institutions, has also recommended Challa Sreenivasulu Setty’s name as the reserved list candidate for the vacancy.

The chairman of SBI is usually appointed from amongst serving managing directors of the lender. Khara is one of the four current managing directors of the bank, the other three being Arijit Basu, Challa Sreenivasulu Setty and Ashwani Bhatia.

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Dinesh Khara, the senior-most Managing Director of SBI, heads the Government Bonds & Ssecurities wing of the bank. He holds a board-level position and supervises the businesses of SBI’s non-banking subsidiaries. Prior to being appointed as Managing Director of the country’s largest lender, he was the MD and CEO of SBI Funds Management Pvt Limited (SBIMF).

Who is DK Khara?

Joined SBI as a probationary officer in 1984, Khara is a seasoned banker. He has experience across all verticals of banking such as retail Credit, SME and Corporate Credit, deposit mobilisation, international banking operations and branch management.

Within SBI circles, Khara is known as a general banking specialist. He also had a foreign stint during his three-decade-long career in SBI at the bank’s Chicago office and was associated with the overseas acquisition of Indian Ocean International Bank Mauritius during his stint in overseas expansion wing.

Over the last three decades, Khara has handled departments like associates and subsidiaries, global banking in SBI, Corporate Accounts Group and International Banking Group.

Khara holds a Masters in Business Administration from FMS New Delhi and is a post-graduate in Commerce. He is also a Certified Associate of Indian Institute of Bankers (CAIIB). Prior to being appointed as SBI MD, Khara was the MD and CEO of SBI Funds Management Pvt. Ltd.

Challenges ahead

Khara’s ascension to the chairman post comes at a time when the banking industry is facing an unprecedented challenge. The onset of COVID-19 has put the banking industry on the back foot; there is a likely build-up of huge asset quality pressure across verticals.

Khara’s other challenge will be finding the right equation in his relation with the central government, which is the majority owner in the bank. SBI chairman’s job is tougher than other PSB chiefs since the lender commands a leadership position in the banking sector. SBI’s moves set trends in the banking sector. Hence SBI chief’s comments and actions will be watched closely by the government. During Rajnish’s term, there had been a few occasions when the SBI chief came under heavy criticism by the finance ministry.Against this backdrop, Khara will have to hit the ground running and prepare his plan of action. Being an insider, Khara knows SBI culture well and has the backing of an experienced team.