Khara, one of the bank's four managing directors, replaces Rajnish Kumar, who is due to step down on Oct.7 after being at the helm for three years.

A state-run banks appointment panel in August recommended Khara as the next chairman of SBI.

(Reporting by Radhika Anilkumar in Bengaluru and Manoj Kumar in Mumbai; Editing by Shailesh Kuber)