New Delhi: Atanu Chakraborty, part time chairman and independent director of HDFC Bank, resigned from his position with immediate effect on Wednesday, citing ethical concerns linked to developments within the bank over the past two years.
In his resignation letter addressed to the chairman of the governance, nomination and remuneration committee, Chakraborty stated that certain developments and practices within the organisation were not aligned with his personal values and ethical principles. He clarified that these differences formed the sole reason for stepping down and confirmed there were no additional factors behind his decision.
Chakraborty joined the bank’s board in May 2021 and served during a period that included the landmark merger between HDFC Ltd and HDFC Bank. The consolidation created one of the largest financial institutions in the country and elevated the bank to the position of the second largest in India. Despite the strategic significance of the merger, the full benefits of the integration are still expected to unfold over time.
Following his resignation, the bank confirmed through a regulatory filing that there were no other reasons for his departure apart from those mentioned in the letter. The board acknowledged his contributions during his tenure and expressed appreciation for his role in guiding the institution through a transformative phase.
Amid the leadership change, the Reserve Bank of India approved the appointment of Keki Mistry as interim part time chairman for a period of three months beginning March 19. Mistry previously served as vice chairman of HDFC Ltd before its merger with HDFC Bank.
The central bank noted that it had taken note of the developments and approved the temporary arrangement requested by the bank. It also reiterated that HDFC Bank remains a Domestic Systemically Important Bank with strong financial fundamentals, a professionally run board and a capable management team.
The leadership change had an immediate impact on investor sentiment. Shares of HDFC Bank, a major component of the Nifty 50 index, came under pressure after the announcement. The bank’s American Depositary Receipts in the United States fell sharply overnight, while the stock in Indian markets also declined during early trading.
Market analysts expect the stock to remain under pressure in the near term amid the leadership transition and broader economic uncertainties.
