The board of Axis bank ltd. has cleared the reappointment of Shikha Sharma as Managing Director and CEO for a period of three years, commencing from June 2018. Earlier, the appointment of Egon Zehnder, an executive search firm, to identify the next CEO had given rise to a lot of speculation that Sharma may not continue beyond her current term which was due to end in June 2018. “The appointment of the search firm was in the interest of best governance, given that I would have completed nine years with the bank in 2018, and it does not preclude anything. You should wait to hear the announcement from the board at an appropriate time. I’m very excited of what’s possible in the financial services space in India”, Sharma had told CNBC TV-18, when questioned about the exit rumours. This seems to be an attempt to end any uncertainty regarding a change in leadership.
The Axis bank note to the exchanges read – This is to inform you that the Board of Directors at its meeting held on 26th July 2017, approved the reappointment of Shikha Sharma as the Managing Director & CEO of the Bank for a period of 3 years, w.e.f. 1st June 2018, subject to compliance with the prescribed formalities and receipt of requisite regulatory/statutory approvals. Shikha Sharma had taken over as chief of Axis Bank in June 2009 from PJ Nayak.
The first quarter ( Apr- Jun 17) results declared by the bank on Tuesday, revealed the bad loan woes continue for the lender. The bank had to write off Rs 2,462 crores worth of NPAs, more than double in the previous quarter. At the close of the day, the Axis bank scrip had shed 1% from the previous close and was trading at Rs 523.60.