Oct 6 (Reuters) - The Indian government on Tuesday appointed Dinesh Khara as chairman of the State Bank of India (SBI) , the country's top lender, for three years, effective Oct. 7.

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)