Private sector lender Axis Bank said on Friday that it has started the process to select a new Managing Director (MD) and Chief Operating Officer (CEO), which is currently held by Shikha Sharma, who is scheduled to demit office in December this year.

Earlier this month, Sharma had requested the Board to relieve here by December, reducing her new three-year term to 7 months, which will commence on June 1.

In a regulatory filing, Axis Bank said, "This is to inform you that the Board of Directors of the Bank has commenced the succession process to appoint a new Managing Director & CEO of the Bank."

A global leadership advisory firm Egon Zehnder, has been appointed by the Board to conduct the succession process and evaluate candidates for the said post. The bank further said the Board will ensure that the process will be completed before the end of Sharma's tenure and "thus facilitate smooth transition of leadership responsibilities at the bank".

In December 2017, the bank had decided to reappoint Shikha Sharma as the Managing Director and CEO, for a period of three years with effect from June 1, 2018, subject to receipt of requisite approvals.

PTI reported that the Board had accepted Sharma's request to reduce her tenure amidst RBI raising questions over her re-appointment for the fourth term as MD and CEO of the third largest private sector lender in the wake of mounting non-performing assets (NPAs) or bad loans.

On May 31, Sharma would be completing her third term as MD and CEO of Axis Bank.