Monday, April 20, 2009
Axis Bank
After a marathon meeting, the Axis Bank board on Monday appointed Shikha Sharma as the private bank’s new managing director (MD) and CEO — a decision that drove the present chairman & CEO Pangal Jayendra Nayak to resign three months before the end of his term. Ms Sharma has been appointed for a period of five years, subject to the Reserve Bank of India’s approval. Ms Sharma was MD of ICICI Prudential Life Insurance — the largest private sector life insurance company. Another senior ICICI group official Renuka Ramnath, MD & CEO of ICICI Venture, put in her papers on Monday. She is likely to float her own private equity fund.
Ms Sharma’s decisions would be closely watched by banking circles. Even though Axis, under the leadership of Mr Nayak since 2000, has emerged as the third-largest private bank, the organisation has a culture very different from the ICICI group, better known for its aggressive policies. Sections within Axis had even lobbied with some of its board members that the bank, which has grown steadily and recorded good profits, should be in a position to appoint a CEO from within.
After Nayak took over the bank, Axis Bank’s net profit has grown at a compounded annual growth rate of at least 40%. The growth in other key business parameters such as deposits, advances and total assets, too, have been superlative. He has transformed a small, institution-owned private bank into India’s third largest private lender, with a lot of aggression and passion for excellence.
IMO: We have to hope for the best. Certainly what has transpired in US (with AIG, Bear Stearns etc as I've been mentioning for literally years by now) and UK (with Northern Rock, B & B etc - the sort of matters which Vince Cable seems to have been mentioning for centuries) have to be born in mind.. We have gone well beyond the days of the Big Bull.
Ms Sharma’s decisions would be closely watched by banking circles. Even though Axis, under the leadership of Mr Nayak since 2000, has emerged as the third-largest private bank, the organisation has a culture very different from the ICICI group, better known for its aggressive policies. Sections within Axis had even lobbied with some of its board members that the bank, which has grown steadily and recorded good profits, should be in a position to appoint a CEO from within.
After Nayak took over the bank, Axis Bank’s net profit has grown at a compounded annual growth rate of at least 40%. The growth in other key business parameters such as deposits, advances and total assets, too, have been superlative. He has transformed a small, institution-owned private bank into India’s third largest private lender, with a lot of aggression and passion for excellence.
IMO: We have to hope for the best. Certainly what has transpired in US (with AIG, Bear Stearns etc as I've been mentioning for literally years by now) and UK (with Northern Rock, B & B etc - the sort of matters which Vince Cable seems to have been mentioning for centuries) have to be born in mind.. We have gone well beyond the days of the Big Bull.
# posted by uv : 7:55 PM
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