India’s #1 private-sector bank, HDFC Bank, tapped into external law firms to review the resignation letter of its former Part-time Chairman, Atanu Chakraborty, last week. In his resignation letter, he has also claimed differences in “values and ethics” with the bank, raising serious concerns about corporate governance at HDFC Bank.
Following Atanu’s resignation, the bank’s shares have declined by nearly 12%. In a statement, HDFC Bank has clarified that there was no mention of any specific practices at HDFC Bank in his resignation letter that were in conflict with his personal values. This review by external legal firms will provide much-needed clarity about HDFC Bank’s corporate governance. The Reserve Bank of India has also commented that there were no major issues about HDFC Bank’s governance or financial condition even after the resignation of its former part-time chairman, Atanu Chakraborty. HDFC Bank remains well-capitalized, professionally managed, and systemically important to India’s financial system.
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Keki Mistry, a veteran HDFC Group official, has been appointed interim non-executive chairman for a three-month period following his resignation. Serving as the chairman of the bank since April 2021, Atanu was also part of the bank’s merger with HDFC Ltd., a $40 billion deal.
