India's central bank has asked Axis Bank to reconsider its Chief Executive Officer Shikka Sharma's fourth three-year term, The Economic Times reported.
The Reserve Bank may be indicating the appointment of bank CEOs henceforth, sources told the paper on Monday.
The bank regulator is believed to have addressed the letter to Sanjiv Misra, Axis Bank chairman, and reasoned that the bank must urge a review, the paper quoted sources as saying.
The review is believed to include the bank’s performance and its non performing assets status. Axis Bank's board may also be considering a one-year term for Sharma, post which it will look for a successor.
Non-Performing Assets (NPAs) at Axis Bank have risen by 336% over the last three years. The bank reported gross NPAs worth Rs 25,001 crore at end of December 2017, compared to NPAs of Rs 1,173 crore at end of December 2009. The bank's Gross NPA ratio currently stands at 5.28%, compared to 1.23% in December 2010.
The RBI action comes right after the ICICI Bank and Videocon loan case came to light.