Analysts are hoping that Axis Bank will move in quickly to return to normal in the wake of as sudden uncertainty at the top level management.
Their CEO Shikha Sharma's decision to step down from the helm at the end of 2018, after opting for a shorter tenure of 6 months when compared to 3 years earlier is quoted as the reason.
The decision comes even as there are reports aboutthe resignation of two corporate banking executives.Srinivasan, Deputy MD and Head of Corporate Banking, Sidharth Rath, Head of Corporate Relationship and Transaction Banking
``With a sudden management vacuum at the top, there may be significant challenges to growth and operations of the bank. In light of these exits, we believe the board must now urgently appoint a credible and competent successor, who can take charge of the bank at a time when it is running the last laps of stressed asset resolution,'' said Macquarie Capital Securities in a release.
``We believe change in top management is positive in the long run as the new CEO will join at a time when most of the clean-up is done and can focus on reviving earnings growth. Also, it will be important to know the profile of the new CEO who will join after Ms Sharma’s new term ends,'' said IDFC Securities
According to -Kotak Institutional Equities, a spate of negative news over the past year has led to the weak performance of the bank’s stock price. ``The bank’s key challenge has been its asset quality which has consistently worsened in recent years largely led by its corporate loan portfolio,'' it further said. ``While the board has not identified a successor just yet, we expect the bank to continue its journey towards de-risking the business by strengthening the liability franchise and increasing the share of retail and better-rated corporates,,'' it went on to add.
