Atanu Chakraborty, part-time Chairman and Independent Director of HDFC Bank, resigned with immediate effect on March 18, triggering developments within the banking sector and raising questions about internal conditions at the bank.
Chakraborty stated in his resignation that over the past two years he had observed certain activities and operational practices within the bank that were not aligned with his personal values and ethics. He cited this as the reason for stepping down, while clarifying that there was no other major factor behind his decision.
Following his resignation, HDFC Bank, with approval from the Reserve Bank of India, appointed Keki Mistry as interim part-time Chairman for a period of three months. He has been tasked with maintaining operational stability during the transition period and preventing any disruption.
Chakraborty joined the board of HDFC Bank in 2021. During his tenure, the bank completed its merger with HDFC Ltd, a transaction that made it the second-largest bank in the country. In his resignation, he noted that the full benefits of the merger are yet to materialize and will require additional time. His role during this period has been regarded as significant within the banking sector.
The resignation also had an impact on the market, with HDFC Bank’s American Depositary Receipts declining by approximately 3%. The development raised investor concerns regarding the circumstances that led to the resignation of the part-time Chairman, highlighting market sensitivity to leadership changes in the banking sector.
Despite these developments, the bank’s financial performance remains stable. In the third quarter of FY2026, HDFC Bank reported a profit increase of 11.5% to ₹18,654 crore. Net Interest Income also recorded growth during the period, indicating that the bank’s core financial position remains intact and that there has been no major disruption in its financial operations.
The resignation has prompted questions regarding the specific activities cited by Chakraborty as being inconsistent with his ethical standards, which have not been disclosed. The development is expected to lead to discussions around governance and management practices at the bank, while investors continue to assess potential implications for stability and strategic decision-making.
