India’s largest lender State Bank of India, under Dinesh Kumar Khara, who’s superannuating as Chairman on August 28 upon turning 63, saw its per employee productivity jumping to a record high.
Khara, an alumni of the Delhi School of Economics, began helming the bank from October 7, 2020, after joining the bank in 1984 as a probationary officer, for a three-year term but got an extension for a year in October 2023 or till he turns 63 which is falling on August 28.
He is likely to be succeeded by his senior-most managing director Challa Sreenivasulu Setty, whose name has been recommended by the official selection board in June. A formal cabinet note on his appointment is awaited.
In response to a query from a reporter on his last earnings press conference on Saturday afternoon, as how would he assess his innings at the bank, the Bank’s chief financial officer Saloni Narayan said, “the bank under the chairmanship of Khara earned higher profits between October 2020 and June 2024 and it touched Rs 1.63 trillion on a cumulative basis from Rs 1.45 trillion in its last 65 years.”
Khara, however, sounded humble and said his target was to achieve an annual revenue of Rs 1 trillion but could not be achieved, as the annual peak earning was only a tad over Rs 84 crore last fiscal. I hope my successor achieves this sooner than later”.
To a question as to who will be SBI’s benchmark to follow on this front, Khara said, “we don’t follow any other benchmark as we are the industry benchmark when it comes to banking in this part of the world.”
He credited these achievements to the collective efforts and clear and sharper focus on profitability, fixing issues on time, which resulted in increasing productivity.
Revealing more on Khara’s achievements, Narayan said the per employee productivity jumped from Rs 2.73 crore in June 2020 to Rs 37.06 crore in June 2024, while per employee share in the profit gained over six times from Rs 5.79 lakh to Rs 30 lakh during this period.
Today SBI a world leader with assets of over $500 billion and is the only domestic lender in the Fortune Global 500 list and is the tenth largest employer in the country with over 2.5 lakh employees.
With a market cap of Rs 7.57 trillion (as of Friday last when the market tanked over 1 percent, after crossing the Rs 8-trillion mark after the post-election rally to become the second most valuable bank overtaking ICICI Bank) the bank controls almost a quarter of the system wide loans and deposits totalling Rs 87.13 trillion. Of this, the advances are of Rs 38.13 trillion and deposits are of Rs 49.01 trillion
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