NEW DELHI, Aug 26 (Reuters) – India is contemplating elevating the retirement age for chairmen and managing administrators of state-owned banks, which management over 60% of the banking system’s property, a authorities official stated on Saturday.

The proposal into consideration is to lift the age restrict for the chairman of the nation’s largest lender, State Bank of India (SBI) (SBI.NS), to 65 years from 63 years, and that for managing administrators of different state-owned banks to 62 years from 60, the official stated.

SBI is ruled by separate laws from different government-owned banks.

“The plan is still being considered. A final decision has not been taken,” the official stated, declining to be named as discussions are ongoing.

The age restrict for state-run financial institution chiefs is way decrease than their non-public sector friends, who retire at 70 and have longer tenors. Analysts have usually cited this as a cause for an absence of continuity in technique at state-owned lenders.

Chiefs of state-run banks are usually appointed for 3 years and could be given an extension primarily based on their efficiency.

Separately, the federal government is planning to offer a 10-month extension to current SBI Chairman Dinesh Khara who’s slated to retire in October-end, the official stated.

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