Responding to a question from TOI, Axis Bank said in a statement "The bank's board follows a standard process on senior appointments, and forwards its recommendations to the regulator. This process is currently in progress and we are unaware of any final decision on this issue. We would also like to mention that the correspondence between regulator and bank is strictly private and confidential".

Sources said RBI has become cautious on executive appointments as it has come under pressure from the government. Axis Bank did have a run-in with the regulator on bad loans. RBI had earlier this month imposed a penalty of Rs 3 crore + on Axis Bank for mis-stating level of NPAs. In a statement, RBI had said that inspection of the bank with reference to its FY16 accounts showed that "violations of various regulations issued by RBI in assessment of NPAs". Earlier in October, Axis Bank said it had to make additional provisions of Rs 4,867 crore towards 'divergence' between its own NPA numbers and those identified by RBI.

RBI has been taking a tough stance on divergences, imposing penalties on banks for not recognising defaults. It has also decided to do away with all loan restructuring schemes that were permitted earlier. In recent weeks, RBI has had an exchange of words with the finance ministry, which had accused the central bank of not being accountable enough.