As Axis Bank CEO Shikha Sharma's fourth term has been cut short to six months, the bank is now looking for a person at the helm, and for that global leadership advisory firm Egon Zehnder has been appointed to conduct the succession process.
As Axis Bank CEO Shikha Sharma’s fourth term has been cut short to six months, the bank is now looking for a person at the helm, and for that global leadership advisory firm Egon Zehnder has been appointed to conduct the
succession process and evaluate candidates. “The Board of Directors of the bank has commenced the succession
process to appoint a new Managing Director & CEO of the bank,” Axis Bank said in a filing to stock exchanges.
The bank wants the search for new MD & CEO to end before the tenure of Shikha Sharma ends. “The board will ensure that the said process will be completed before the end of Smt Sharma’s tenure and thus facilitate a smooth transition of leadership responsibilities at the bank,” the bank added.
Shikha Sharma’s fourth term as Axis Bank’s CEO & MD will begin from July 1 and end on December 31. Earlier, she was given a three-year-long forth term but the Reserve Bank of India objected to the decision and asked the board to reconsider. Following RBI’s objection, Shikha Sharma requested a shorter stint of 6 months, which was approved by the board.
The central bank had in a letter to Axis Bank’s board flagged concerns over deteriorating asset quality condition over the years under Shikha Sharma. Axis Bank’s NPAs jumped by over five-fold in recent fiscal years. The gross NPAs worth Rs4,110 crore at the end of March 2015 surged to Rs21,280 crore at the end of March 2017. In fact, the bank was even penalised for incorrectly reporting bad loans by the RBI. Axis Bank is the third largest private bank in India.