MUMBAI: RBI is understood to have raised some queries in regards to the Axis Bank board's proposal to reappoint Shikha Sharma as MD & CEO for a fresh term starting June 2018. The queries come greater than 8 months after the board authorized Sharma's reappointment, following a board approval.
Responding to a query from TOI, Axis Bank said in a remark "The bank's board follows a standard process on senior appointments, and forwards its recommendations to the regulator. This process is currently in progress and we are unaware of any final decision on this issue. We would also like to mention that the correspondence between regulator and bank is strictly private and confidential".
Sources said RBI has turn into wary on government appointments because it has come under power from the federal government. Axis Bank did have a run-in with the regulator on bad loans. RBI had earlier this month imposed a penalty of Rs 3 crore on Axis Bank for mis-stating stage of NPAs. In a remark, RBI had said that inspection of the bank with reference to its FY16 accounts confirmed that "violations of various regulations issued by RBI in assessment of NPAs". Earlier in October, Axis Bank said it needed to make further provisions of Rs 4,867 crore in opposition to 'divergence' between its own NPA numbers and the ones known by way of RBI.
RBI has been taking a tricky stance on divergences, implementing penalties on banks for now not recognising defaults. It has additionally made up our minds to eliminate all mortgage restructuring schemes that were authorized earlier. In contemporary weeks, RBI has had an trade of phrases with the finance ministry, which had accused the central bank of now not being responsible sufficient.
Responding to a query from TOI, Axis Bank said in a remark "The bank's board follows a standard process on senior appointments, and forwards its recommendations to the regulator. This process is currently in progress and we are unaware of any final decision on this issue. We would also like to mention that the correspondence between regulator and bank is strictly private and confidential".
Sources said RBI has turn into wary on government appointments because it has come under power from the federal government. Axis Bank did have a run-in with the regulator on bad loans. RBI had earlier this month imposed a penalty of Rs 3 crore on Axis Bank for mis-stating stage of NPAs. In a remark, RBI had said that inspection of the bank with reference to its FY16 accounts confirmed that "violations of various regulations issued by RBI in assessment of NPAs". Earlier in October, Axis Bank said it needed to make further provisions of Rs 4,867 crore in opposition to 'divergence' between its own NPA numbers and the ones known by way of RBI.
RBI has been taking a tricky stance on divergences, implementing penalties on banks for now not recognising defaults. It has additionally made up our minds to eliminate all mortgage restructuring schemes that were authorized earlier. In contemporary weeks, RBI has had an trade of phrases with the finance ministry, which had accused the central bank of now not being responsible sufficient.
RBI questions Axis Bank CEO's reappointment
![RBI questions Axis Bank CEO's reappointment]()
Reviewed by Kailash
on
April 02, 2018
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