HDFC Bank Chairman Atanu Chakraborty Resigns, Cites Ethical Concerns

HDFC Bank on March 19 announced that its chairman Atanu Chakraborty has resigned with immediate effect, citing ethical concerns in a letter dated March 17, according to a regulatory filing.

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Interim Chairman Appointed

The bank stated that the Reserve Bank of India has approved the appointment of board member Keki Mistry as interim part-time chairman for a period of three months starting March 19. The appointment ensures continuity in leadership at India’s largest private sector lender.

Ethical Concerns Behind Resignation

In his resignation letter addressed to the chairman of the bank’s governance, nomination, and remuneration committee, Chakraborty cited “certain happenings and practices” within the bank as the reason for stepping down.

He explained that the changes he'd witnessed over the last couple of years didn't resonate with his own principles and moral compass. He also clarified that there were no additional reasons for his resignation beyond those mentioned in the letter, as confirmed by the bank in its filing.

Role During HDFC Merger

Chakraborty joined the board of HDFC Bank in May 2021 and served as part-time chairman and independent director. During his tenure, the bank completed its merger with HDFC Ltd, a transaction that resulted in the creation of one of the largest financial institutions globally.

In his letter, he described the merger as a “momentous event” and noted that while it positioned the bank as the largest in India, the full benefits of the integration are yet to be realised.

Acknowledges Board and Staff

Chakraborty expressed appreciation to the board and senior management for their support and cooperation during his tenure. He also thanked the bank’s employees and extended his best wishes for the institution’s future.

He further requested that the necessary regulatory filings be completed with the Registrar of Companies and other authorities to formalise his resignation.