HDFC Bank on Wednesday announced the resignation of its part-time chairman and independent director Atanu Chakraborty, who stepped down with immediate effect, citing concerns over certain practices at the Bank that are 'not in congruence' with his personal values and ethics. Following his exit, Reserve Bank of India (RBI) has approved the appointment of Keki Mistry as interim part-time chairman of the Bank for a period of three months from 19 March 2026.
Mr Chakraborty, a retired officer from the Indian Administrative Services (IAS), served as the secretary during FY19-20 in the department of economic affairs (DEA) in the Union ministry of finance (MoF). He had joined HDFC Bank in May 2021. HDFC Bank was trading 4% down at ₹808.70 at 10.58am Thursday on BSE, while the 30-share Sensex was 2.16% down at 75,050.24 points.
The development marks a significant leadership change at the country’s largest private sector lender, as the institution navigates post-merger integration and regulatory oversight.
Mr Chakraborty’s reference to internal practices, without elaborating further, is likely to draw attention from market participants and governance observers, particularly given the scale and systemic importance of HDFC Bank in India’s banking sector.
In his letter addressed to the chairman of the governance and nomination committee, Mr Chakraborty says that while his tenure since joining the board in May 2021 had seen 'momentous events', including the merger with HDFC Ltd, certain developments over the past two years had prompted his decision to step down.
In a regulatory filing, the Bank says Mr Chakraborty’s resignation was tendered on 18th March, though his resignation letter was dated 17 March 2026 and received by the Bank at 3:17pm on 18 March 2026.
“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 decision,” he says, adding that there are no other material reasons for his resignation.
In a statement, RBI says it has taken note of the recent developments in HDFC Bank. "A transition arrangement as requested by the Bank has been approved by RBI as regards the position of part time chairman of HDFC Bank. HDFC Bank is a domestic systemically important bank (D-SIB) with sound financials, a professionally run board and a competent management team. Based on our periodic assessment, there are no material concerns on record regarding its conduct or governance. The bank remains well-capitalised, and its financial position remains satisfactory with sufficient liquidity."
Mr Mistry, a veteran in the financial services sector and a long-time board member, will hold the position until the Bank finalises a permanent appointment, subject to regulatory approvals.
Responding to a question on Mr Chakraborty's sudden exit during a conference call, Mr Mistry says, "I can only say that at the board levels, there has never been any kind of discussion on any matter which is contentious in terms of governance. If there have been any minor issues here and there, they have been addressed appropriately. What caused that letter to be sent today is something that, to my mind, really defies logic. But if any of my board members or colleagues would like to step in and say something, please do. I am not aware of any issue other than that."
“Believe me, at the age of 71, I would not take on this responsibility for three months if the systems, processes, and governance practices in HDFC Bank did not align with my principles and my level of integrity,” Mr Mistry says. “I can only say that at the board level, there has never ever been any kind of a discussion on any matter which is contentious in terms of governance.”
Mr Chakraborty’s tenure coincided with the landmark merger of HDFC Ltd with HDFC Bank which created one of India’s largest financial conglomerates and positioned the bank as the second-largest in the country. He noted that while the merger was a strategic milestone, its full benefits are yet to be realised.
The Bank’s board placed on record its appreciation of Mr Chakraborty’s contributions during his tenure and wished him success in his future endeavours.
The Bank clarified in its filing that there are no reasons for the resignation other than those stated in Mr Chakraborty’s letter.
Speaking to
NDTV Profit over his exit, Mr Chakraborty says, "HDFC Bank is an organisation I nurtured for five years. I am not pointing out any wrongdoings at the bank. My ideologies did not match with the organisation, and hence it was time to part ways."
Further updates on the appointment of a full-time chairman are expected after the interim period.
The CEO's name itself is embroiled in dispute with Leelavathi trust and they have filed a ciminal case and how can he continue as CEO?
While the institution concerned has, over decades, built a strong reputation for stability, soundness, and professionalism, developments of this nature cannot be viewed lightly. At the same time, it is equally important to avoid speculation or premature conclusions that may unnecessarily unsettle depositors, investors, and employees.
In this context, it would be appropriate for the concerned authorities and the bank’s board to examine the matter with due diligence and provide necessary clarity. Transparent communication, wherever required, will go a long way in reinforcing public confidence and ensuring that the institution continues to function in a manner that upholds the highest standards of governance and accountability.
Banks occupy a unique and sensitive position in the economy, dealing as they do with public funds and trust. Any perception of divergence from established ethical and professional norms, even if only apparent, deserves timely attention and reassurance in the larger public interest.
Will RBI / Supreme Court take cognisance of the situation and order an independent investigation.
BTW myself and my wife are share holders of HDFC Bank for the last 36 years. The bank will overcome this temporary crisis soon.