Retirement Age For Bank, Fi Staff Raised To 60 Yrs

The government yesterday raised the retirement age for officers and award staff in public sector banks and financial institutions from 58 years to 60 years with immediate effect.

Bankers said the biggest casualty of the move, which could have serious consequences, would be fresh recruitment in the nationalised banking sector, which is already in a state of virtual freeze.

In a circular issued by the banking division yesterday to the chief executive officers of all PSU banks and FIs, the government also said that no extension will be given to any officer or award staff beyond 60 years.

The circular said that in line with the government regulations, a person will retire from the afternoon of the last day of the month in the year he or she reaches the age of 60.

 

The government, during the past week, had raised the retirement age to 60 years for all government employees and public sector undertakings. On May 17, the bank unions had taken up the issue with the Indian Banks' Association (IBA). The government move, however, came even before the IBA made its recommendation to the Centre.

Incidentally, the retirement age for the State Bank of India (SBI) staff who had joined the bank prior to bank nationalisations in 1969, was already 60 years. Retirement age in two other PSU banks - Allahabad Bank and Bank of India - were already 60 years.

Sources said the increase in the retirement age for the staff of the banking sector is unlikely to alter the impending large-scale retirement in the top echelons of PSU banks and financial institutions. IFCI chairman K D Agrawal and IDBI chief S H Khan will retire during the year following attainment of 60 years. Their retirement age was 60 because they were former SBI personnel and their service regulations continue to be governed by the SBI regulations.

The other top bank personnel to retire this year include SBI chairman M S Verma and the two managing directors O P Sethia and M P Radhakrishnan.

In the insurance sector, General Insurance Corporation chairman K C Mittal is set to retire next week, but Life Insurance Corporation chairman G Krishnamurthy, who was due to retirement this year, will get an extension for two more years.