Axis CEO clarifies on 'merger' talks: Ends all the speculations in the markets

Country’s third largest lender Axis Bank CEO Shikha Sharma denied any approaches for a possible merger. Contrary to the speculations in the markets, Sharma in an interview to a leading English business daily, clarified the situation. Dalal Street has been buzz of Axis Bank becoming a potential acquisition target for other private sector banks.

“We haven’t been approached by anybody, and frankly for Axis at this point in time, there is so much to do,” said Sharma to the newspaper.

Over the past week there has growing talks of Axis Bank being a possible acquisition target of many leading private sector banks with the likes of Kotak Mahindra Bank leading the line. The buzz has been so strong that it has led to stock gaining close to 15 per cent in the last 10 days trading session.

Axis Bank where government directly and indirectly holds the majority shareholding has been rumoured to be thinking of completely exiting the bank via its 12 per cent holding through SUUTI.

Therefore, the ultimate decision on any M&A will be taken by the government in one or the other way. With 12 per cent shareholding up for grabs there are definitely going to be suitors lining up for it making it an interesting proposition in times to come.