Chaudhry, who is replacing Shikha Sharma, will begin his new role on January 1, 2019 for a three-year term.
Moneycontrol News
Shares of Axis Bank jumped 5 percent on Monday morning after the lender announced that Amitabh Chaudhry of HDFC Life will take over as chief executive officer (CEO) and managing director (MD).
The stock touched an intraday high of Rs 675.00 and an intraday low of Rs 644.00.
Chaudhry, who is replacing Shikha Sharma, will begin his new role on January 1, 2019 for a three-year term. Chaudhry is currently the Managing Director of HDFC Life.
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“We wish to inform you that the Board of Directors (the Board) of the Bank at its meeting held today has taken on record the approval granted by the Reserve Bank of India (RBI) to the appointment of Amitabh Chaudhry as the Managing Director & CEO of the Bank, for a period of three years, with effect from 1st January 2019 up to 31st December 2021 (both days inclusive) and the terms and conditions relating to the said appointment, including remuneration,” Axis Bank said in a notification to exchanges.
Chaudhry recently had offloaded shares worth Rs 55.77 crore between April and August this year, leading to heightened speculations that he will take over as the next chief of the third largest private sector bank.
Axis Bank’s statement also said, “A meeting of the Board will be convened in due course to inter alia, approve the appointment of Shri Amitabh Chaudhry as an Additional Director of the Bank and as the Managing Director & CEO of the Bank…” under the RBI rules.
Axis Bank had appointed Egon Zehnder, a global leadership search firm, to help in identifying a successor to Sharma.
Under Sharma, the bank’s business grew but witnessed a significant rise in bad loans over the last two years.
The stock has risen over 13 percent in the past one month, while in the past three days, it has risen over 5 percent. At 09:30 hrs Axis Bank was quoting at Rs 671.40, up Rs 26.25, or 4.07 percent, on the BSE. It touched a 52-week high of Rs 675.00.