As Axis Bank CEO Shikha Sharma’s fourth term is coming to an end in December, the bank has recommended names of three candidates to replace her, according to the stock exchange filing.
As Axis Bank CEO Shikha Sharma’s fourth term is coming to an end in December, the bank has recommended names of three candidates to replace her, according to the stock exchange filing. Axis Bank, however, has not named the three candidates it has shortlisted for the top position. “…the Board of Directors of the Bank at its meeting held on 9th July 2018, has recommended the names of three candidates, in order of preference, for the approval of the RBI,” the bank said in a statement.
“The candidate as approved by the RBI, will succeed Smt. Shikha Sharma, whose term as the Managing Director & CEO of the Bank, is due to expire on 31st December 2018,” the bank added. In April, Axis Bank had appointed advisory firm Egon Zehnder to conduct the succession process and evaluate candidates. The bank wants the search for new MD & CEO to end before the tenure of Shikha Sharma ends in December. Shikha Sharma’s fourth term as Axis Bank’s CEO & MD has begun on July 1.
Shikha Sharma was given a three-year-long fourth term but after RBI’s objection, Shikha Sharma requested a shorter stint of 6 months. 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.