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Axis Bank up 6% in two days as board cuts short CEO Shikha Sharma's tenure

The stock was up 2.4% at Rs 531 on Tuesday in early morning trade, extending its Monday's 3.4% gain on the BSE

SI Reporter  |  Mumbai 

Axis Bank

was up 2.4% at Rs 531 on Tuesday in early morning trade, extending its Monday’s 3.4% gain on the BSE, after Shikha Sharma, the bank’s managing director and chief executive officer (MD & CEO), decided to step down.

“Shikha Sharma, Managing Director & of the Bank has requested the Board to reconsider the period of her re-appointment as the Managing Director & of the Bank be revised from 1st June 2018 up to 31st December 2018. The Board has accepted her said request, subject to the approval of the Reserve Bank of India,” Axis Bank, the private sector lender said in a regulatory filing on Monday after market hours.

“This gives enough time (seven months) for an orderly transition. A sudden exit would have put their back to the wall,” said Amit Tandon, MD and founder, Institutional Investor Advisory Services, the Business Standard report suggested. CLICK HERE TO READ FULL REPORT

The bank and its board had faced flak from investors over a range of issues, including manipulation by some bank employees after the government had announced demonetisation in November 2016.

Meanwhile, the BSE said, the Exchange has sought clarification from with respect to article appearing on - April 09, 2018 titled "4 staffers among 7 arrested for defrauding private bank of Rs 370 million". The reply is awaited.

In past one year, Axis Bank had underperformed the market by falling 1% as compared to 12% rise in the Nifty 50 index and 16% surged in index till Friday.

First Published: Tue, April 10 2018. 09:30 IST