Govt plans to extend retirement age of LIC Chairperson and heads, MDs of other PSBs

The government is considering raising the mandatory retirement age for the heads of PSBs like the Life Insurance Corporation, the State Bank of India (SBI), and others in the public banking sector. LIC's chairman can now serve until retirement at age 65, according to media reports.

A proposal to raise the mandatory retirement age for executives at public service banks and the Life Insurance Corp (LIC) is now under consideration. At the same time, the official told PTI that talks are on to increase the retirement age for PSBs' CEOs to 62 from 60. The LIC chairman's mandatory retirement age as of 2015 was 62. 

Dinesh Khara, chairman of the State Bank of India, is also expected to be granted a new term in office, according to PTI. On Sunday, a high-ranking government official informed PTI that the government is considering raising the retirement age of MDs of PSBs from the existing 60 to 62 years old.

Khara, a seasoned banking professional, is the current chairman of SBI. He assumed the helm in 2020 for a three-year term. Khara is required to retire next August, upon reaching the age of 63, as per the present policy.

No official statement has been made regarding the planned increase in the retirement age for government officials. A final verdict has not yet been reached.

Until June 29, 2024, Siddhartha Mohanty will serve as the head of India's state-run life insurance company, LIC. After then, until June 7th, 2025, he will continue to serve as MD/CEO. Having succeeded M R Kumar in March of this year. LIC's current management team consists of M. Jagannath, Tablesh Pandey, and Mini Ipe. Increasing doctors' retirement ages can have an effect on how long they practice medicine.

Also Read:-FPIs invest Rs 10,689 cr in Aug; pace of investment slows

LIC was established by the government of India in 1956. Life insurance and national prosperity were two of the driving forces behind the organization's inception.