Axis Bank has asked Axis Capital’s Managing Director Dharmesh Mehta to go on leave as he in his personal capacity submitted a bid to acquire competing business – the brokerage and investment banking division of IDFC Bank.
As per the official communiqué of the bank, Mehta has been asked to proceed on leave.
Industry sources reveal that the future Managing Director of the private lender Amitabh Chaudhry has expressed strong reservation concern on the fact that incumbent MD of Axis Capital has opted for a bid for a competing business in his personal capacity.
Chaudhry is expected to join the bank as the Managing Director and Chief Executive Officer for 3 years from January 1, 2019.
IDFC Bank is in the final stage of the merger with Capital First. It is also in the process of selling its broking business IDFC Securities.
The broking business received around five bids, including Axis Capital chief executive Dharmesh Mehta. The remaining bidders are namely Vikas Khemani of Carnelian Capital, who was formerly leading the institutional sales and investment banking business of Edelweiss Financial Services; investment banking and broking firm Equirus Capital; and InCred Finance among others.