The Axis Bank board has curtailed the fourth term of its CEO and Managing Director Shikha Sharma to seven months following an unusual request from her that she be relieved on December 2018, 29 months ahead of the scheduled term.
The board's decision comes amidst RBI raising questions over her re-appointment for the fourth term as MD and CEO of the third largest private sector lender in the wake of mounting non-performing assets (NPAs). Sharma, who would complete her third term on May 31, 2018, has been heading the bank since 2009.
The Axis Bank board accepted her request for a shorter seven-month term (from June 1 to December 31, 2018), subject to the approval of the Reserve Bank of India (RBI), the bank said in a regulatory filing. The bank said on December 8 last year, the board had decided to reappoint Sharma as the Managing Director and CEO, for a period of three years with effect from June 1, 2018, subject to receipt of requisite approvals.
The re-appointment, however, was yet to get the approval of the Reserve Bank of India (RBI). "In this connection kindly note that Shikha Sharma, Managing Director & CEO of the Bank has requested the Board to reconsider the period of her re-appointment as the Managing Director and CEO of the Bank to be revised from June 1, 2018 up to December 31, 2018," it said.
The filing did not elaborate why Sharma wanted her fourth term to be curtailed to seven months from three years. The board, the filing said, has "accepted" her said request, subject to the approval of the RBI.
Inputs From PTI