Shares of Axis Bank on Tuesday surged over 5%, adding Rs 7,212 crore to its market valuation, a day after its CEO and Managing Director Shikha Sharma's tenure was shortened.
The stock soared 5.43% to end at Rs 546 on the BSE. Intra-day, it jumped 6.10% to Rs 549.50.
At NSE, shares of the company surged 5.17% to settle at Rs 546.15.
Led by the rise in the stock, the company's market valuation grew by Rs 7,212.03 crore to Rs 1,40,133.03 crore.
The stock was the biggest gainer among the bluechips on Sensex and Nifty.
In terms of equity volume, 11.98 lakh shares of the company were traded on the BSE and over 2 crore shares changed hands at the NSE during the day.
The Axis Bank board has curtailed the fourth term of its CEO and Managing Director Shikha Sharma to seven months following an unusual request from her that she be relieved in December 2018, 29 months ahead of the scheduled term.
The board's decision came amid 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).
Sharma, who would complete her third term on May 31, 2018, has been heading the bank since 2009.
The Axis Bank board accepted her request for a shorter seven-month term (from June 1 to December 31, 2018), subject to the approval of the Reserve Bank of India (RBI), the bank said in a regulatory filing on Monday.