Axis Bank extends tenure of MD & CEO for 3 more years

Amitabh Chaudhry, the managing director and CEO of Axis Bank, will serve three more years at the helm of the Mumbai-headquartered private lender with effect from January 1, 2025, up to December 31, 2027.

The decision was taken by Axis Bank's board based on the recommendations of the nomination and remuneration committee.

Chaudhry's re-appointment as MD & CEO is subject to the approval of the Reserve Bank of India (RBI).

Under Chaudhry's leadership, the standalone profit of the country's third-largest lender compounded at 47% ever since he took over the reins from Shikha Sharma in 2019. He was given a three-year extension in 2021.

Chaudhry, 59, is the former CEO of HDFC Standard Life Insurance. He joined HDFC Life in 2010 and oversaw the company's public market debut.

During the financial year 2023-24, Axis Bank concluded the successful merger of Citibank's consumer business in India which it acquired for ₹11,603 crore in 2022. The deal bumped up the lender's market share with a 150-basis point hike in low-cost deposits from 44.5% to 46%. It also increased its credit card market share from 11.4% to 16.2%.

Shares of the private lender rose as much as 6% to hit a high of ₹1,126 in intraday trade after Chaudhry's re-appointment. The Nifty was trading 0.03% down at 22,347 points.

Net profit of the lender surged 17% sequentially to ₹7,130 crore for the quarter ended March 31, 2024, compared with net loss of ₹5,728 crore in the corresponding period last year.

The bank’s net interest income (NII) rose 11% year-on-year and 4% quarter-on-quarter to ₹13,089 crore. The net interest margin (NIM) for Q4 FY24 rose 5 basis points Q-o-Q to 4.06%.

"While we relentlessly focused on our key priority areas - Bharat Banking, Digital and Sparsh (our customer obsession program), we were also nimble in picking up some enticing new opportunities that came our way. Our Citi integration is on track, and we are inching towards the final milestone LD2 in the next six months,” says Chaudhry.

The private lender recorded total provision and contingencies for Q4 FY24 at ₹1,185 crore, while the specific loan loss provisions for Q4 FY24 stood at ₹832 crore.

For the full fiscal year, Axis Bank's profit surged 160% to ₹24,861 crore from ₹9,580 crore in FY23.

The bank’s board also re-appointed Meena Ganesh as an independent director for a second term of four years with effect from August 1, 2024, up to July 31, 2028. It also announced the re-appointment of Gopalaraman Padmanabhan as an independent director for a second term of four years with effect from October 28, 2024, up to October 27, 2028 (both days inclusive), subject to the approval of the members of the bank.