Shikha Sharma
Shikha Sharma | |
|---|---|
| Born | November 19, 1958 India |
| Occupation(s) | Economist, banking executive |
| Years active | 1980–present |
| Known for | Managing director and CEO of Axis Bank (2009–2018); leadership roles at ICICI Group |
Shikha Sharma (born 19 November 1958) is a distinguished Indian economist and banking executive who led Axis Bank as managing director and CEO from 2009 until 2018. Prior to this, she dedicated nearly thirty years to the ICICI Group, contributing extensively across its banking and insurance sectors.
Early life and education
Sharma was born on 19 November 1958. Her father served as a brigadier in the Indian Army and took part in the 1965 and 1971 Indo-Pakistani conflicts. Due to her father's military postings, she attended seven different schools throughout India, ultimately completing her secondary education at Loreto Convent School in Delhi.
Although her initial academic interest was physics, she pursued a BA (Honours) in Economics from Lady Shri Ram College followed by an MBA from Indian Institute of Management Ahmedabad. Additionally, she earned a postgraduate diploma in Software Technology from Mumbai's National Centre for Software Technology.
ICICI Group
After completing her MBA at IIM Ahmedabad, Sharma joined ICICI Ltd. in 1980. During her 29-year career there, she collaborated with notable leaders such as K. V. Kamath and former Prudential plc CEO Mark Tucker.
She was instrumental in founding ICICI Securities through a partnership with J.P. Morgan, and played a significant role in launching various group ventures including investment banking and retail finance operations. Sharma also pioneered a micro-insurance product providing life coverage for just $1 monthly. She held leadership positions as managing director and CEO of ICICI Personal Financial Services (1998–2000) and ICICI Prudential Life Insurance (2000–2009).
In 2009, both Sharma and Chanda Kochhar were considered candidates to succeed K. V. Kamath as CEO and managing director of ICICI Bank. Shortly after Kochhar’s appointment, Sharma departed ICICI Bank after being recruited by Egon Zehnder to head Axis Bank. In a 2014 interview, she characterized her relationship with Kochhar as respectful but not friendly.
Axis Bank
Starting 1 June 2009, Sharma assumed the role of managing director and CEO at Axis Bank for an initial five-year term, succeeding P. J. Nayak who held the chairman and CEO positions. She focused on reinforcing the bank’s retail banking segment to reduce dependence on corporate lending and shield the institution from economic downturns. Her strategic initiative "Vision 2015" aimed to expand retail banking to balance corporate exposure, successfully raising retail loans from 21% to 46% of total loans during her leadership.
In November 2010, Axis Bank acquired Enam Securities through an all-stock transaction initially valued at ₹2,067 crore but later adjusted downward by about one-third due to market fluctuations. The bank also divested a 25% stake in its mutual fund arm, Axis Asset Management Co. Ltd., selling it to Schroder Singapore Holdings. The establishment of Axis Bank UK as a subsidiary occurred in 2011.
In June 2013, Sharma received a salary increase of 10%, bringing her basic pay to ₹1.96 crore. Since her appointment, Axis Bank's share price appreciated over 90%, with net profits growing at an annual compounded rate exceeding 20% between 2014 and 2015. The bank maintained a low net non-performing asset (NPA) ratio of 1.34% as of March 2015 compared to the industry average of 4.4%. During the fiscal year 2015-16, net profit climbed by 18.3% to ₹7,358 crore, operating profit rose by 24%, and net interest income increased by 19%. Advances and deposits expanded at rates surpassing industry norms while CASA deposits remained steady at around 45%. The bank broadened its international footprint by opening a representative office in Dhaka in February 2016.
Axis Bank earned recognition as one of the best workplaces according to a Business Today survey in 2013 and was featured in a Harvard Business Review case study focusing on change management. It was awarded "Bank of the Year in India" by The Banker magazine in 2014 for achieving $1 billion profit after tax despite liquidity challenges. In 2015, the bank received a corporate governance excellence award from the Institute of Company Secretaries of India and was named "Most Trusted Private Sector Bank" by The Economic Times for two consecutive years.
Nevertheless, gross NPAs increased from 0.96% in March 2009 to 6.77% by March 2018. The Reserve Bank of India (RBI) issued reprimands to Axis Bank twice—in 2016 and again in 2017—for underreporting bad loans amounting to ₹9,480 crore and ₹5,633 crore respectively. In April 2016, Axis posted its first quarterly loss after 46 consecutive profitable quarters, with earnings falling short of analyst expectations through December 2017. During this period, the bank’s stock price declined over 7%. Sharma defended the institution’s financial disclosures amid accusations of concealing non-performing assets but acknowledged concerns regarding elevated infrastructure sector exposure.
Following the demonetisation event in India in late 2016, Axis Bank suspended nineteen employees implicated in alleged money laundering violations uncovered during Income Tax Department raids. The RBI stepped in to quell rumors about potential license revocation. Sharma announced engaging KPMG for a forensic audit and committed to strengthening compliance procedures.
In July 2017, Axis Bank extended Sharma’s tenure as CEO by three years despite speculation linking her to potential roles within Tata Group; these rumors were officially denied by the bank. Later that year in December, the Securities and Exchange Board of India initiated an internal probe into insider trading allegations related to premature earnings disclosures via WhatsApp.
On 9 April 2018, Axis Bank declared that Sharma would step down as MD and CEO effective 31 December that year despite board approval for renewal beginning June; reports suggested RBI concerns over performance influenced this decision. Following this announcement, shares rose more than three percent. Amitabh Chaudhry succeeded her on 1 January 2019.
Additional Roles
Effective from 31 March 2022, Piramal Enterprises named Shikha Sharma as a Non-Executive-Non-Independent Director, subject to shareholder consent. Sharma holds directorships at Tata Consumer Products, Ambuja Cements, Mahindra & Mahindra, and Dr. Reddy's Laboratories. Additionally, she advises Google Pay, NextBillion Technology, and the Bahaar Foundation, and is a member of the board of governors at the Indian Institute of Management Lucknow.
Personal Background
Shikha Sharma wed Sanjaya Sharma—who previously served as CEO of Tata Interactive Systems—during their time as students at IIM Ahmedabad in 1978. The couple has two children named Tilak and Tvisha. She also has two younger brothers who practice cardiology.
In February 2023, the Sharmas sold their 4,390 square foot residence at The Imperial in Mumbai to the 2015 Grover Family Trust for a sum of ₹32.25 crore.
Honors and Accolades
- Asset Triple A Country Awards recognized her bank as "Best Domestic Bank in India" in 2010
- Awarded 'Banker of the Year' for 2014–15 by Business Standard
- Recipient of the AIMA - J. R. D. Tata Corporate Leadership Award in 2014
- Named 'India's Best Woman CEO' by Business Today in 2013
- Honored as 'Transformational Business Leader of the Year' at AIMA's Managing India Awards in 2012
- Recognized as Woman Leader of the Year at Bloomberg-UTV Financial Leadership Awards in 2012
- Earned Businessworld Banker of the Year Award in 2012
- Featured on Forbes Asia's list of 50 Power Business Women in 2012
- Included among Indian Express’s Most Powerful Indians in 2012
- Listed in India Today’s Power List of 25 Most Influential Women in 2012
- Named among Finance Asia's Top 20 Women in Finance in 2011
- Inducted into Business Today’s 'Hall of Fame' in 2011
- Featured on Fortune Global and India’s list of 50 Most Powerful Women in Business in 2011
- Awarded Businesswoman of the Year at Economic Times Awards in 2008
- Recognized as Entrepreneur of the Year – Manager at E&Y Entrepreneur Awards in 2007
- Honored as Outstanding Businesswoman of the Year at CNBC TV18's Business Leader Awards