Axis Bank Ltd on Thursday said that its board has cleared the reappointment of Shikha Sharma as managing director and chief executive officer for a period of three years starting June 2018. The early re-appointment comes against the backdrop of speculation that Sharma may not stay on to lead the bank beyond her current term, which was due to end in June 2018.
Earlier, Axis Bank had appointed Egon Zehnder as consultant to identify the next CEO. The bank, however, had clarified that this is a board approved process and may not necessarily lead to a change in management.
By deciding to clear Sharma’s reappointment nearly a year before her term is set to end, the Axis Bank board is attempting to quell any uncertainty about an impending leadership change.
" 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."
Axis Bank Notice To Exchanges
Shikha Sharma took over as the chief of Axis Bank in June 2009 from PJ Nayak. Over the course of her tenure, the bank has seen advances rise from Rs 81,557 crore at the end of the March 2009 quarter to Rs 3.73 lakh crore as of March 2017. Over the past two years, the bank’s management has come under criticism for prioritizing growth over asset quality. The lender has seen its gross bad loans ratio rise to 5.04 percent as of March 2017 compared to 0.96 percent in March 2009, when Sharma took charge.
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