HDFC Bank chief’s exit raises eyebrows, RBI calms nerves

Mumbai: In a sudden development, Atanu Chakraborty resigned as part-time chairman of HDFC Bank, citing ethical concerns, marking the first mid-term exit of a chairman at the lender.

In his resignation letter dated March 17, Chakraborty said certain practices he observed over the past two years were “not in congruence” with his personal values and ethics. He clarified that there were no other material reasons for stepping down. His resignation was formally received by the bank on March 18 and took immediate effect.

Hours after the announcement, the Reserve Bank of India issued a statement seeking to calm concerns, stating that there are “no material issues on record” regarding the bank’s conduct or governance. The regulator подчеркнул that the bank remains well-capitalised, financially sound, and backed by a professional board and competent management. The RBI has approved the appointment of Keki Mistry as interim part-time chairman for three months starting March 19, ensuring continuity in leadership. Chakraborty, a former Economic Affairs Secretary, had been chairman since May 2021 and played a key role during the landmark merger of HDFC Ltd with the bank in July 2023, which created one of India’s largest financial institutions with a balance sheet exceeding Rs 18 lakh crore. While his exit comes just ahead of the financial year-end, the RBI said it will continue to engage with the bank’s board and management on the way forward, signalling close regulatory oversight even as it dismissed concerns over governance lapses.