RBI is understood to have raised some queries regarding the Axis Bank board’s proposal to reappoint Shikha Sharma as MD & CEO for a fresh term beginning June 2018. The queries come more than eight months after the board approved Sharma’s reappointment, following a board approval.
According to The Economic Times, the RBI has asked the Axis Bank’s board to reconsider its decision to reappoint Sharma as MD and CEO for a fourth term beginning June 2018. She has been heading the bank since June 2009, and last July the board of directors had decided to keep her in the hot seat for another three years, till 2021.
Sources in the know told the daily that the RBI had addressed its letter to Axis Bank chairman Sanjiv Misra and cited the bank’s performance and its deteriorating asset quality as grounds for its objection to the reappointment. Axis Bank’s NPA problem has snowballed from around Rs 1,200 crore in December 2009 to a scary Rs 25,000 crore as of end-December 2017. The sources added that the board is now considering a one-year term for Sharma, during which it will look for a successor.