HDFC Bank Appoints External Law Firms to Review Atanu Chakraborty’s Resignation
Board Moves to Strengthen Governance Oversight
Mumbai, March 24: HDFC Bank has announced that its Board has approved the appointment of external law firms, both domestic and international, to review the resignation letter of former part-time Chairman and Independent Director Atanu Chakraborty.The decision was taken during a Board meeting held on March 23. According to an exchange filing, the appointed law firms have been tasked with examining Chakraborty’s resignation letter and submitting their findings within a reasonable timeframe.
The bank described the move as a proactive step aimed at reinforcing transparency and strengthening corporate governance standards.
Resignation Cites Divergence in Values
Chakraborty resigned from his position on March 18. In his resignation letter, he stated that certain developments within the bank over the past two years were not aligned with his personal values and ethics.However, HDFC Bank clarified that the letter did not identify any specific events or practices that were inconsistent with those values.
Chakraborty has also publicly stated that his resignation was not linked to any wrongdoing or malpractice within the bank, but rather due to a divergence in ideologies and approach. He had joined the bank’s board in 2021.
RBI Approves Interim Chairman Appointment
Following the resignation, the Reserve Bank of India approved the appointment of Keki Mistry as interim part-time Chairman for a period of three months starting March 19.Mistry has indicated that there are no major concerns facing the bank in the wake of Chakraborty’s departure.
Internal Probe and Employee Terminations
Separately, the bank reportedly terminated three employees, including senior executives, after an internal investigation into alleged mis-selling of high-risk AT1 bonds to non-resident Indian clients through its overseas operations.The bank reiterated that the external review is intended to provide clarity around the circumstances of the resignation while further strengthening governance oversight.
HDFC Bank Shares Rebound in Early Trade
Shares of HDFC Bank were trading over 3 percent higher at Rs 767.75 on Tuesday, hitting an intra-day high on the BSE as of 10 am.The stock had declined 11.73 percent between the close on March 18 and March 23.
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