Amitabh Chaudhry Reappointed as Axis Bank CEO for Third Term Following RBI Approval

Amitabh Chaudhry Reappointed as Axis Bank CEO for Third Term Following RBI Approval

Axis Bank announced on Thursday that the Reserve Bank of India (RBI) has granted approval for the reappointment of Amitabh Chaudhry as the bank’s Managing Director and CEO. Chaudhry, whose leadership has been pivotal in the bank's recent growth, will continue in this role for another three years, from January 1, 2025, to December 31, 2027. Axis Bank’s board had sought his reappointment in April 2024, marking his third term at the bank’s helm.

Since joining Axis Bank in 2019 during a period of significant financial distress due to high bad loan ratios, Chaudhry has led a robust turnaround. Over his six-year tenure, he has improved asset quality, strengthened Axis Bank's retail and digital services, and expanded its commercial credit portfolio. Under his leadership, Axis also acquired Citibank India’s retail assets, enhancing its footprint in the credit card and consumer finance sectors. Furthermore, Chaudhry has bolstered Axis Bank’s wealth management services, expanding offerings and market reach.

Macquarie Capital’s Suresh Ganpathy commented that Chaudhry's reappointment alleviates investor concerns, saying, “One of the major overhangs for Axis is over… with the RBI approval, any doubts over Amitabh’s extension have been cleared.”

In its latest earnings report for the September 2024 quarter, Axis Bank posted an 18% year-on-year increase in net profit, totaling ₹6,918 crore. This growth, attributed to strong trading income and lower operating expenses, outperformed Bloomberg analysts’ projections of ₹6,370 crore. Comparatively, the bank reported a profit of ₹5,863 crore for the same period last year. Axis Bank’s net interest income rose by 9% year-on-year to ₹13,483 crore, while net interest margins (NIM) eased slightly to 3.99%, down from 4.11% in the previous year.

Reflecting on the current financial environment, Chaudhry noted, “Today’s conditions present a range of challenges. Although we maintain excess liquidity, deposit rates remain stagnant, and regulatory guidelines limit the credit-to-deposit ratio. We also observe some deterioration in asset quality in certain unsecured segments. In such a climate, maintaining steady NIM, enhancing asset quality, and making prudent provisions set Axis Bank apart.”

Chaudhry’s reappointment is seen as a vote of confidence in his strategic vision and capability to navigate challenges in a fluctuating market while enhancing Axis Bank's operational resilience and financial stability.