Axis Bank stock rises to fresh 52-week high post appointment of Amitabh Chaudhry as new CEO
BusinessToday.In September 10, 2018
The Axis Bank stock rose in early morning trade amid announcement that Amitabh Chaudhry has been appointed as managing director and CEO of the private sector lender from January 1, after incumbent Shikha Sharma steps down at the end of this year.
The stock rose to its 52-week high level of 675.70 in early morning trade rising more than 4.63% in early morning trade.
At 9:54 am, the stock was trading 4.13% or 26.65 points higher at 671.80 on BSE.
The stock has been gaining for the last three days and has risen 5.51% during the period.
The stock has gained 36.51% during the last one year and risen nearly 20% since the beginning of this year.
It received a buy recommendation from Motilal Oswal on September 9 with a target price of 750.
The country's third-largest private sector lender on Saturday appointed Amitabh Chaudhry as MD and CEO for a period of 3 years, with effect from January 1, 2019 up to December 31, 2021.
Chaudhry resigned from the post of MD and CEO of HDFC Standard Life Insurance Company on the same day.
In July 2017, the board of Axis Bank had approved re-appointment of Sharma, to be her fourth term as MD and CEO begun from June 2018. However, in April this year, Sharma called for her new term to be reduced to seven months from a three-year tenure without citing reasons, which was accepted by the board of Axis Bank subsequently.
It was learnt that the RBI had asked Axis Bank's board to reconsider the decision to re-appoint Sharma as its CEO for the fourth term amid concerns over rising bad loans on the bank's books. She had completed her third term as the bank's head on May 31.
Chaudhry, 54, has been associated with HDFC Life since January 2010. He has been associated with HDFC Life since January 2010. Chaudhry started his career in the Corporate Banking with Bank of America in 1987, where he worked in diverse roles. Chaudhry is a B.Tech in (Electronic and Electricals) from the Birla Institute of Technology and Science, Pilani and is an alumnus of lndian Institute of Management, Ahmedabad.