The board of Axis Bank has recommended names of three candidates for the position of managing director (MD) and chief executive officer (CEO). The names have been recommended in order of preference for approval by the Reserve Bank of India (RBI), the bank said in a stock exchange filing.
The candidate, as approved by the RBI, will succeed Shikha Sharma, whose term as the MD & CEO is due to expire on December 31, 2018. “As mandated under the extant RBI norms, the bank will be submitting its application in respect of the recommendations relating to the said appointment, for the approval of the RBI,” the bank said.
In April 2018, the proposed three-year term of Shikha Sharma as managing director & CEO of Axis Bank was cut to just seven months following the Reserve Bank of India’s directive to the board to reconsider her three-year term. Sharma will now leave Axis Bank in December 2018.
While the third three-year term of Sharma — who built her career in ICICI Bank along with Chanda Kochhar who is now facing allegations of conflict of interest in extending loans to the Videocon group — was to end in June 2018, the RBI has asked the Axis Bank board headed by non-executive chairman Sanjiv Mishra to reconsider its decision to offer a fresh three-year term from June 2018 till 2021.
In 2017, the bank’s board initiated a process to select a new MD and CEO and hired executive search firm Egon Zehnder. Though some potential candidates were shortlisted, the board did not find them good enough to be appointed as MD and CEO and then plumped for
Shikha Sharma in the backdrop of reports of her moving out and also of a merger with another bank.