HDFC Bank Chairman Quits Without Specifics, Raising Questions

HDFC Bank Chairman Atanu Chakraborty Resigns Citing "Values and Ethics" Differences​

New Delhi/Mumbai, March 19 – HDFC Bank’s non-executive chairman Atanu Chakraborty has resigned abruptly, citing differences over "values and ethics," a rationale the bank described as baffling due to the absence of specific instances, despite repeated requests for clarification.

Keki Mistry, a seasoned leader within the HDFC Bank Group, has been appointed as interim chairman following Chakraborty’s departure. Mistry noted that while there may have been "relationship issues" between Chakraborty and the executive leadership, no substantive concerns were found behind the resignation. He emphasised that the bank’s governance and operations remain stable.

This marks the first time a part-time chairman of HDFC Bank has stepped down mid-term, raising questions over board functioning.

In his resignation letter dated March 17, Chakraborty stated, "Certain happenings and practices within the bank, that I have observed over the last two years, are not in congruence with my personal values and ethics. This is the basis of my aforementioned decision." He added in a letter addressed to HK Bhanwala, Chairman of the Governance, Nomination and Remuneration Committee, that "there are no other material reasons for my resignation other than those stated above."

HDFC Bank filed a late-evening statement confirming that Chakraborty resigned as Part-time Chairman and Independent Director on March 18, 2026, with immediate effect.

Chakraborty, a 1985 batch IAS officer of the Gujarat cadre, retired as Secretary of the Department of Economic Affairs in April 2020, having also served as Secretary of the Department of Investment and Public Asset Management. He was appointed part-time chairman of HDFC Bank on May 5, 2021, a year after his retirement, and his term was extended in 2024 till May 4, 2027. His tenure coincided with the reverse merger of HDFC Ltd with HDFC Bank, which became effective on July 1, 2023, creating a combined balance sheet exceeding Rs 18 lakh crore.

The Reserve Bank of India (RBI) said there were no material concerns regarding the bank’s conduct or governance. "HDFC Bank is a Domestic Systemically Important Bank with sound financials, a professionally run board and a competent management team. Based on our periodical assessment, there are no material concerns on record," the RBI stated, noting that the bank remains well-capitalised with sufficient liquidity.

Following the announcement, HDFC Bank shares fell over 5 per cent on Thursday, closing at Rs 799.70 on the BSE after intraday lows of Rs 772, marking a 52-week low. The Finance Ministry described the bank as a "strong institution with strong fundamentals," echoing RBI assurances.

Addressing reporters, HDFC Bank MD and CEO Sashidhar Jagdishan said most board members were "baffled" by Chakraborty’s resignation due to the lack of specifics. He confirmed attempts were made to persuade him to either retract his resignation or elaborate on the concerns, without success. The matter was discussed during the nomination and remuneration committee meeting on Wednesday, and four board members subsequently engaged with the RBI before appointing Keki Mistry as interim chairman for three months.

While widespread speculation surrounds the resignation, Mistry referred only to a "personal relationship issue" and declined to elaborate. Deputy Managing Director Kaizad Bharucha added that the merger with HDFC Ltd has delivered tangible benefits, including increased savings account relationships among home loan borrowers, with average balances 2.5 times the bank’s average.

HK Bhanwala clarified that although Chakraborty’s resignation letter is dated March 17, the board became aware of it only during the NRC meeting on March 18.

HDFC Bank is the latest private sector lender to face leadership challenges, following past controversies at ICICI Bank and Axis Bank regarding governance and regulatory concerns.