Dinesh Kumar Khara has been appointed as the next Chairman of State Bank of India for a term of three years. He will succeed Rajnish Kumar, who completed his tenure as the head of the biggest lender in India on Tuesday.Khara will assume charge on October 7. He was one of the four managing directors of SBI and was in charge of global banking and subsidiaries of the bank.
Interestingly, Khara was among the contenders for the chairman's post in 2017 as well. An alumnus of the Faculty of Management Studies, Delhi University, Khara heads the Global Banking division of SBI.
He holds a board-level position and supervises the businesses of SBI's non-banking subsidiaries. Prior to being appointed managing director, he was the MD and CEO of SBI Funds Management Pvt Limited (SBIMF).
Khara, who joined SBI in 1984 as a Probationary Officer, was instrumental in merging five associate banks and Bharatiya Mahila Bank Bank with SBI effective April 2017.
The new SBI chairman will have a tough task ahead as the banking sector is going through a major crisis due to the Covid-19 pandemic. As on June 30, SBI had made total provisions of Rs 3,000 crore to cover potential Covid-19 losses. Gross non-performing asset (NPA) ratio of 5.44 per cent was lower than 6.15 per cent in the March quarter.