Senior banker Dinesh Kumar Khara was appointed as the new chairman of State Bank of India (SBI) by the government on Tuesday.

"The central government appoints Dinesh Kumar Khara as chairman of State Bank of India (SBI) for a period of three years with effect from the date of his taking over charge of the post on or after October 7, 2020 or until further orders, whichever is earlier," a notification issued by the Finance Ministry said.

Khara replaced Rajnish Kumar, who completed his three-year term on Tuesday.

Khara, who was recommended as the next chairman of SBI by the Banks Board Bureau (BBB), was among the contenders for the chairman's post in 2017 as well.

As per convention, the SBI chairman is appointed from a pool of serving managing directors at the bank.

Khara was previously appointed as managing director of SBI in August 2016 for a three-year term and was later got a two-year extension in 2019 after review of his performance.

He was also the MD and CEO of SBI Funds Management Pvt Limited (SBIMF), prior to being appointed managing director.