He will succeed Arundhati Bhattacharya, who is at present serving her one-year extension, that ends on Friday.
The Appointments Committee of the Cabinet has approved the appointment of Kumar for a period of three years from October 7, according to an order issued by the Department of Personnel and Training (DoPT).
Kumar, who has been with SBI since 1980, has worked across departments including credit, project finance, foreign exchange and retail banking. He also worked for SBI overseas in Canada and the United Kingdom.
"It is indeed an honour to be entrusted with the leadership of SBI at a time when India is best poised for growth. I look forward to serving the bank to the best of my abilities along with the support of all my colleagues spread across the globe," said Kumar about his appointment.