Shikha Sharma reappointed Axis Bank CEO for three years

Mumbai: Axis Bank Ltd has re-appointed Shikha Sharma as managing director and chief executive officer for three years from June 2018, putting to rest speculation that she was leaving the bank.

The lender said in a stock exchange notice that the board approved her re-appointment when it met on Wednesday.

Sharma’s term was due to end in June 2018. Reserve Bank of India rules allow banks to choose a CEO only for three years, although they are eligible for re-appointment.

Over the past few months, there have been multiple media reports about Sharma leaving the lender, which Axis Bank has denied.

On 14 July, Bloomberg reported that executive search firm Egon Zehnder has been selected by the Axis Bank board to select a new CEO, citing people it didn’t identify.

Earlier on Thursday, Reuters reported Sharma as saying that the lender had appointed a search firm to scout for her successor in the interests of good governance, but said that doesn’t “preclude anything” about her continuation or otherwise with the bank.

Sharma took the reins of the bank in 2009 from PJ Nayak. During her tenure, Axis Bank has grown its advances nearly 5 times to Rs3.85 trillion. Annual profits too grew from Rs1,815.36 crore in 2008-09 to Rs3,679.28 crore in 2016-17. At the same time, gross non-performing assets ballooned 24 times to Rs22,030 crore from Rs915 crore eight years ago. The bank’s shares dropped 0.78% while the Bankex Index gained 0.79%.