HDFC Group sees second high-profile exit after Sukthankar
Ending speculation, Axis Bank said on Saturday that HDFC Life Insurance’s chief executive officer Amitabh Chaudhry will become the bank’s next managing director and chief executive officer.
Axis Bank’s present MD & CEO Shikha Sharma had decided to step down from December 31, following which Axis’s board submitted three names for the post, in the order of preference, to the Reserve Bank of India (RBI) for its approval.
“We wish to inform you that the Board of Directors of the bank at its meeting held [on Saturday] has taken on record the approval granted by RBI to the appointment of Shri Amitabh Chaudhry as the [MD & CEO] of the bank,” Axis Bank said in a filing with exchanges.
“I would like to thank the RBI and the Axis Bank board for the privilege and honour given to me to lead this great institution. Together, with the support of the board and the Axis team, I am confident of continuing the bank’s remarkable journey these past 25 years and to contribute to its future growth,” Mr. Chaudhry said in a statement.
“I am sure that under the leadership of Amitabh, the bank would soar to greater heights,” Ms. Sharma said.
Amitabh Chaudhry (54), is currently the MD & CEO of HDFC Standard Life, and has been with the insurer since January 20I0. Under his leadership, HDFC Life successfully conducted an IPO in 2017. Prior to joining HDFC Life, he joined Infosys BPO Ltd. in 2003 and was elevated as its MD & CEO in 2006.
This is the second high-profile exit from the HDFC Group after HDFC Bank’s deputy MD Paresh Sukthankar resigned last month.
HDFC Life’s board will meet on September 12 to consider the appointment of the new MD & CEO, the insurer said in a filing to exchanges.
Ending speculation, Axis Bank said on Saturday that HDFC Life Insurance’s chief executive officer Amitabh Chaudhry will become the bank’s next managing director and chief executive officer.
Axis Bank’s present MD & CEO Shikha Sharma had decided to step down from December 31, following which Axis’s board submitted three names for the post, in the order of preference, to the Reserve Bank of India (RBI) for its approval.
“We wish to inform you that the Board of Directors of the bank at its meeting held [on Saturday] has taken on record the approval granted by RBI to the appointment of Shri Amitabh Chaudhry as the [MD & CEO] of the bank,” Axis Bank said in a filing with exchanges.
Three-year term
Mr. Chaudhry will have a three-year term starting from January 1, 2019. The board of Axis Bank will now convene a meeting to approve Mr. Chaudhry’s appointment.
“I would like to thank the RBI and the Axis Bank board for the privilege and honour given to me to lead this great institution. Together, with the support of the board and the Axis team, I am confident of continuing the bank’s remarkable journey these past 25 years and to contribute to its future growth,” Mr. Chaudhry said in a statement.
“I am sure that under the leadership of Amitabh, the bank would soar to greater heights,” Ms. Sharma said.
Amitabh Chaudhry (54), is currently the MD & CEO of HDFC Standard Life, and has been with the insurer since January 20I0. Under his leadership, HDFC Life successfully conducted an IPO in 2017. Prior to joining HDFC Life, he joined Infosys BPO Ltd. in 2003 and was elevated as its MD & CEO in 2006.
This is the second high-profile exit from the HDFC Group after HDFC Bank’s deputy MD Paresh Sukthankar resigned last month.
Key challenge
One of the challenges before Mr. Chaudhry is to restore the financial health of Axis Bank, which has been hit by rising bad loans. Axis Bank reported a 46% decline in net profit to ₹701 crore in the April-June quarter after incurring a loss in the Jan.-March quarter. The gross NPA of the bank was at 6.52% as on June 30, 2018, as compared with 5.03% a year earlier, but lower than 6.77% in March 2018.
HDFC Life’s board will meet on September 12 to consider the appointment of the new MD & CEO, the insurer said in a filing to exchanges.
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