In a significant development, HDFC Bank’s part-time chairman and independent director Atanu Chakraborty has resigned from his position citing concerns over “certain happenings and practices” at the bank.
He said the certain happenings were not aligned with his personal values and ethics.
In his resignation letter, Chakraborty wrote, developments over the past two years were not in congruence with my personal values and ethics, which led him to step down with immediate effect. He also clarified that there were no other reasons behind his decision.
Reacting to the development, the stocks of HDFC Bank faced one of the biggest hits.
Its share price opened 8.7 per cent down after the resignation of Chairman Atanu Chakraborty, and the development made investors jittery about management stability. The recovered quickly from the opening lows as it was trading 4.23 per cent down around 10 am.
In his resignation letter, Chakraborty thanked the board and management for their support, and also praised the energy and verve of the bank’s middle and junior-level employees, saying they could help build a reimagined organisation.
On the crisis, the management of HDFC Bank has emphasised that its board oversight remains fully operational and unwavering.
Further, the CEO of HDFC Bank, Sashidhar Jagdishan said the bank will continue to maintain stakeholder trust and address any issues or omissions as they arise.
Atanu Chakraborty had joined the HDFC Bank board in May 2021 and was part of a key phase in the bank’s journey. He was also pivotal in the bank’s merger with HDFC Ltd.
The Reserve Bank of India has approved the appointment of Keki Mistry as interim part-time chairman for three months starting March 19, 2026.
Mistry said there was no power struggle within the bank and stressed that the board had not witnessed any kind of complete difference in opinion in its meetings.