The term of the of the former chairman was coming to an end this week and Kumar was named as a "front runner" to be the next chairman.
To head the country's largest bank, Rajnish Kumar has been appointed as the new chairman of State Bank of India (SBI).
Earlier, he was the MD and CEO of SBI Capital Markets Ltd, the merchant banking arm of the SBI Group, and has rich experience in handling large credit, project finance, retail banking and FOREX.
The Banks Board Bureau (BBB) had interviewed four of the bank's managing directors for the chairman post back in June and recommended one name to the government, reports said. Kumar will take over the charge after Arundhati Bhattacharya tenure gets over on 6th October. Rajnish was finally selected to take the role of the chairman of SBI.
In October 2016, Bhattacharya had got a one year extension for maintaining continuity as the Bank was preparing to absorb five associate banks and the Bharatiya Mahila Bank in April. Bhattacharya's greatest challenge probably remained tackling the NPA problem, which has plagued most state-owned banks and some private banks. She is positioning the bank as "the banker to digital India". Kumar, who has a three-year term at the helm, joined SBI as a Probationary Officer (PO) in 1980 and has worked in various departments.
Arundhati Bhattacharya, who is retiring next month, will be remembered for taking some bold steps in a public sector set-up.
Many say there are lot of issues that are still unresolved.