HDFC Bank Appoints Interim Chairman After Chakraborty Resignation

HDFC Bank Chairman Atanu Chakraborty Resigns Citing Ethical Concerns​

First Mid-Term Exit Raises Governance Questions at India’s Second-Largest Lender​

New Delhi, March 19
In a sudden development, Atanu Chakraborty has resigned as the part-time chairman of HDFC Bank, citing ethical concerns, marking the first instance of a mid-term exit by a chairman at the private sector lender.

The resignation has triggered concerns around the bank’s internal functioning, given Chakraborty’s explicit reference to issues related to values and practices observed during his tenure.

Resignation Letter Points to Ethical Misalignment​

In his resignation letter dated March 17, Chakraborty stated that certain developments within the bank over the past two years did not align with his personal values.

"Certain events and practices within the bank, that I have observed over the last two years, are not in line with my personal values and ethics. This is the basis of my aforementioned decision," he wrote.

In a separate communication addressed to H K Bhanwala, Chairman of the Governance, Nomination, and Remuneration Committee, he clarified that there were no other material reasons behind his decision.

Bank Confirms Exit, Details Timeline​

In a late evening regulatory filing, HDFC Bank confirmed that Chakraborty resigned as Part-time Chairman and Independent Director with immediate effect on March 18, 2026.

The bank noted that although the resignation letter was dated March 17, it was received on March 18 at 15:17 hours IST.

RBI Approves Keki Mistry as Interim Chairman​

Following the resignation, HDFC Bank informed that the Reserve Bank of India has approved the appointment of Keki Mistry as interim part-time chairman.

The appointment is effective from March 19, 2026, for a period of three months.

Tenure Marked by Landmark HDFC Merger​

Chakraborty joined the board of HDFC Bank as part-time chairman on May 5, 2021, after retiring as Secretary of the Department of Economic Affairs in April 2020.

His tenure was later extended for three years until May 4, 2027.

During his time on the board, the bank completed its reverse merger with HDFC Ltd, which became effective on July 1, 2023. The merger created a financial entity with a combined balance sheet exceeding Rs 18 lakh crore, making it the second-largest bank in India.

Reflecting on this period, Chakraborty noted that while the merger was a significant strategic milestone, its full benefits are yet to materialize.

Background and Closing Remarks​

A 1985 batch IAS officer from the Gujarat cadre, Chakraborty previously served as Secretary of the Department of Investment and Public Asset Management before taking charge as Secretary of the Department of Economic Affairs.

In his concluding remarks, he expressed gratitude to fellow board members and acknowledged the contribution of independent and non-executive directors. He also highlighted the energy within the bank’s middle and junior levels, suggesting it could play a key role in shaping a reimagined organization going forward.