Shares of India’s third-largest private sector lender Axis Bank jumped more than 6% to over one-month high in intraday deals on Tuesday after bank’s Chief Shikha Sharma called for an early exit from the position of MD & CEO. Shikha Sharma has requested after the board members of Axis Bank to cut short her term as MD & CEO of Axis Bank from 3 years to six months only. “Smt Shikha Sharma, Managing Director & CEO of the bank has requested the board to reconsider the period of her re-appointment as the Managing Director & CEO of the bank be revised from 1st June 2018 up to 31st December 2018,” Axis Bank said in an exchange filing on Monday.
Shares of Axis Bank emerged as the biggest gainers among the components of the key equity indices Sensex and Nifty on Tuesday. The stock of Axis Bank surged as much as 6.1% to over one-month high of Rs 549.5 before settling up 5.43% at Rs 546 on BSE while the stock advanced 5.85% to Rs 549.7 before concluding up 5.43% at Rs 547.5 on NSE on Tuesday. A massive trading volume was seen on the counters, as at end of the day, more than 2.28 crore equity shares of Axis Bank exchanged hands on both NSE and BSE with about 2.16 crore equity shares on NSE alone. Following the huge gain in the share prices, Axis Bank’s market capitalisation grew by Rs 7212 crore to Rs 1,40,133 crore on Tuesday on BSE.
The board has amended its decision to re-appoint Shikha Sharma as the MD & CEO of the Axis Bank, for a period of 3 years which was subject to receipt of requisite approvals.
Earlier this month on 2 April 2018, shares of Axis Bank dipped more than 3% on the news reports that the Reserve Bank of India is saying to reconsider Shikha Sharma as MD & CEO of Axis Bank for the fourth term. Later in the day Axis Bank informed terming media reports as speculative that the bank’s board follows a standard process with regard to senior appointments and forwards its recommendations to the regulator (to the extent required). This process is currently in progress.