Axis Bank to start search for two senior executives

Shikha Sharma, who is likely to join Axis Bank in August, will have to start the search for at least two top-level executives soon after she takes over as the managing director and chief executive officer.

Of the four internal contenders who were in the reckoning for the top job at the country’s third largest private sector lender, MM Agarwal, executive director for corporate and international banking, has already expressed his desire to leave the bank. Though V K Ramani, ED for technology and business processes, is unlikely to quit immediately, he is scheduled to retire by October-end.

While S K Chakrabarti, ED for mid-corporates and SMEs, could not be contacted, Hemant Kaul, ED in-charge of retail operations said he planned to stay at the bank though he lost out to Sharma in the final round.

The four internal candidates were shortlisted by an internal committee and Kaul had emerged as the front-runner among them.

When contacted, Agarwal said, “I have not resigned yet and have not made up my mind whether I want to continue or not. I will decide in the next 15-20 days.” Asked why he was contemplating stepping down from his post, he said, “I am the senior-most executive director and was in the basket for the selection of the new CEO. However, the board, in its wisdom, decided to go with another candidate. Purely on moral grounds, I should leave.”

He added that he had expressed a desire to quit to the board, but had been asked to reconsider his decision.

Following P J Nayak’s decision to step down as the bank’s chairman and CEO after differences over the appointment of Sharma, Axis Bank is without a chairman or a managing director. At present, Sharma is the Managing Director and CEO of ICICI Prudential Life Insurance, the country’s largest private sector life insurer.

A person familiar with the developments said a committee comprising the four EDs had been constituted to handle the bank’s day-to-day operations until August 1, when the new managing director is scheduled to take over.

Agarwal, as the senior-most ED, will head the committee. This committee will, in turn, report to an executive committee consisting of three or four members of the board of directors which will review the operations of the bank on a frequent basis, the person added.