CS Setty takes over as the 27th Chairman of SBI
Appointment
5 min read
Challa Sreenivasulu Setty, or CS Setty, became the 27th Chairman of India’s largest commercial bank, State Bank of India (SBI), on 28 August 2024. He succeeded Dinesh Khara, who retired after the closing of banking hours on 28 August 2024.
John Matthai was the first chairman of SBI to be appointed in 1955 after the nationalisation of the Imperial Bank of India in 1955 under the State Bank of India Act 1955. The Imperial Bank of India was also renamed the State Bank of India.
Dinesh Khara was appointed chairman of the SBI in October 2020 during the COVID-19 pandemic for three years, which the government extended by one year. Khara retired after attaining the maximum age limit for a chairman of the SBI, which is 63. During Khara’s tenure, SBI has become one of the best-performing banks in India.
Appointment of SBI Chairman
According to the provisions of the State Bank of India Act 1955, the Chairman of SBI is appointed by the government of India in consultation with the Reserve Bank of India (RBI). However, in reality, the Financial Services Institutions Bureau (FSIB) under the Union Ministry of Finance conducts interviews for the post of Chairman and recommends the names to the government of India.
The Appointment Committee of the Cabinet, the highest decision-making body in this matter, normally approves the name recommended by the FSIB. However, the government is not bound to accept the FSIB's recommendations; it can reject them.
Tenure of SBI Chairman
According to the State Bank of India Act 1955, the chairman's tenure can be a maximum of five years. The government of India has also fixed 63 years as the chairman's retirement age. The government of India can specify the chairman's tenure.
CS Setty has been appointed for a term of three years, starting 28 August 2024.
About CS Setty
CS Setty started his career at the SBI as a probationary officer in 1988. In a career that has lasted over thirty years, Setty has worked in diverse fields of corporate credit, retail, digital, and international banking.
He has held important administrative posts in SBI, including Chief General Manager and General Manager in the Corporate Accounts Group, Deputy General Manager in the Commercial Branch, Indore and VP & Head (Syndications) in the SBI New York Branch.
Setty was the SBI Managing Director, heading Global Markets & Technology, before being appointed chairman of the bank.
About State Bank of India
The State Bank of India’s origins can be traced to the establishment of the Bank of Calcutta in 1896, which was renamed the Bank of Bengal in 1806. The Bank of Bombay was set up in 1840, and the Bank of Madras in 1843. All these banks were merged in 1921 to create the Imperial Bank of India, which was formed in 1921.
The State Bank of India Act 1955 was enacted, and the government of India nationalised the Imperial Bank of India.
The act also transferred the bank's ownership from foreigners to the Reserve Bank of India (RBI), which later transferred its ownership to the government of India.
As of date, the government of India holds a 57.6% share of SBI.
Headquarters: Mumbai, Maharashtra
Chairman: Challa Sreenivasulu Setty
Tagline: Pure Banking Nothing Else
