Axis Bank’s corporate banking head and deputy managing director have resigned, the Mint reported. The officials who resigned – though not confirmed by the Axis Bank as yet – are: Corporate Banking Head Sidharth Rath and Deputy Managing Director V Srinivasan.
Sidharth Rath joined the Axis Bank in 2001 and served the bank in various capacity such as senior vice-president, president-corporate banking, and president-transaction banking.
V Srinivasan, joined Axis Bank as the Executive Director – Corporate Banking in 2009 and was elevated as a Director on the Board of Axis Bank in October 2012. Before joining Axis Bank, Srinivasan was Managing Director and Head of Markets with J P Morgan India.
Axis Bank has been in news for the wrong reasons. First, the Reserve Bank slapped a penalty of Rs 3 crore on the bank for violation of NPA classification norms. The move came after, the RBI in its statutory inspection found that the Axis Bank had violated various regulations issued by it in the assessment of non-performing assets.
In another case, the Telecom Department ordered that no new bank guarantee from the Axis bank should be accepted as it had failed to honour a guarantee issued previously. It said: “Axis Bank has failed to invoke a Bank Guarantee issued by them on behalf of Aircel Group of Companies. This action by Axis Bank is a serious breach of trust and contract with Government of India.”
Earlier this month, the Serious Fraud Investigation Office of the Ministry of Corporate Affairs summoned top executive of the bank for giving loan facility to Gitanjali Group. Axis Bank has an exposure of Rs 200 crore to Nirav Modi and Gitanjali Gems accounts.
