NEW DELHI/MUMBAI: In a surprise move that sent shockwaves through the financial sector, Atanu Chakraborty has resigned as the part-time Chairman of HDFC Bank, India’s largest private sector lender, citing differences with the bank over his personal “values and ethics.”
The bank announced the development late on Wednesday, stating that the Reserve Bank of India (RBI) has approved Keki Mistry as the interim part-time chairman for a period of three months, effective March 19.
The Resignation Letter
In his resignation letter, Chakraborty offered a rare and pointed explanation for his departure, without providing specific details.
“Certain happenings and practices within the bank, that I have observed over last two years, are not in congruence with my personal Values and Ethics,” he stated.
The bank’s official statement to stock exchanges did not elaborate further on the reasons behind his decision. Chakraborty could not be immediately reached for comment.
Tenure and Background
Chakraborty’s association with HDFC Bank began in April 2021, when the RBI approved his appointment as part-time chairman for a three-year term. He was reappointed in May 2024 for a further term that was set to extend until May 4, 2027.
A 1985-batch IAS officer of the Gujarat cadre, Chakraborty retired as Secretary of the Department of Economic Affairs in April 2020. He had earlier served as Secretary of the Department of Investment and Public Asset Management (DIPAM), both under the finance ministry.
During his tenure as chairman, the bank navigated the massive $40 billion merger with its parent, HDFC Ltd., creating a financial services behemoth.
Market Reaction
News of the resignation impacted investor sentiment. According to Reuters, US-listed shares of HDFC Bank fell about 7% following the development. In Mumbai, the bank’s shares had closed 0.3% lower earlier on Wednesday, before the announcement was made.
Interim Arrangement
The RBI has moved swiftly to ensure continuity, approving the appointment of veteran financial sector figure Keki Mistry as the interim part-time chairman. This appointment is valid for a three-month period, giving the bank time to find a permanent successor.
