HDFC Bank moved quickly to calm investor concerns on Thursday after the abrupt resignation of its chairman, Atanu Chakraborty, who stepped down citing differences related to “values and ethics.” Newly appointed interim chairman Keki Mistry said the bank remains stable and there are no significant issues affecting its functioning.
In his first statement after assuming the role, Mistry emphasised that the board is focused on maintaining trust and confidence in the country’s largest private sector lender. “The board remains committed to safeguarding investor confidence,” he said, adding that there are “no material matters at this point of time.”
The bank’s chief executive also underlined continuity in operations, saying, “We will continue to ensure that trust in the bank is maintained.”
The assurances followed Chakraborty’s resignation with immediate effect. In a letter dated March 17, he pointed to ethical concerns but did not go into specifics. “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,” he wrote to the board.
In a regulatory filing late Wednesday, HDFC Bank confirmed that the Reserve Bank of India had approved Mistry’s appointment as interim part-time chairman for a period of three months starting March 19.
Chakraborty, a former bureaucrat, had been serving as part time chairman since April 2021 and was reappointed in May 2024 for a term extending until May 2027. During his tenure, the bank completed its landmark merger with Housing Development Finance Corp, creating one of the largest financial services groups globally.
In his resignation letter, Chakraborty described the merger as a “momentous event” but noted that its full benefits are yet to be realised.
The sudden exit unsettled investors, with HDFC Bank’s US listed shares dropping around 8 percent following the announcement. Shares listed in Mumbai had already closed slightly lower before the news became public.
