SBI Bids Farewell To Khara, Makes Room For New Chairman
Khara has served as chairman of State Bank of India since October 2020, during a term which saw the bank's profitability and market perception improve sharply
Dinesh Kumar Khara bid farewell to the bank he led from the front for four years on Tuesday.
Khara has served as chairman of the State Bank of India since October 2020, during a term that saw the bank's profitability and market perception improve sharply, even in an uncertain macroeconomic environment.
The bank's senior management held a farewell event in Khara's honour, according to people who were present there. The event, which went on till late evening, was marked by speeches from all four managing directors and Khara himself.
The outgoing chairman spoke about how India's largest lender held its own during the Covid-19 pandemic. He praised the bank's staff for not seeking even one day's leave during the pandemic and working tirelessly to stabilise operations, even amidst nationwide lockdowns, the people quoted above said.
Khara also pointed out that the bank's net profit during the last four years had been higher than the cumulative profit earned over the last 60 years. During his speech, the outgoing chairman also requested the bank's staff to continue doing the good work they had delivered over these years, according to the people quoted above.
Over the past four years, SBI earned a profit after tax of Rs 1.63 lakh crore. Prior to Khara's tenure, the bank's annual profit in FY20 was Rs 14,448 crore. Compare that with the first quarter of FY25 alone, where SBI clocked a net profit of Rs 17,037 crore.
CS Setty, who till now was managing director in charge of international banking, global markets and technology, will take over as the new chairman of SBI for three years, starting Wednesday. Setty, also a career State Banker, also spoke during Khara's farewell event, where he congratulated his senior and promised to continue the work at the bank, the people present there said.
Setty, who as a teenager collected small debts for his father, will not only need to sustain SBI's pace of profitability but also figure ways to improve on it. He also takes control of India's largest lender at a time when there are technology-related issues cropping up across the industry.
While Khara had always maintained that SBI has spent considerable resources on improving its IT infrastructure, the claim will be tested in the years ahead. Alongside, SBI will need to maintain its leadership in crucial areas such as housing finance, clean unsecured book and deposit mobilisation.
