Ex-HDFC Bank Official Calls Resignation 'Routine', Report Indicates

HDFC Bank Shares Plummet to 52-Week Low Following Resignation of Non-Executive Chairman

On March 19, HDFC Bank's non-executive chairman, Atanu Chakraborty, resigned from his position, citing ethical concerns. Chakraborty's resignation has pushed HDFC Bank shares to a 52-week low of ₹772 on the BSE, resulting in a loss of ₹1.09 lakh crore in investor wealth.

The reasons behind Chakraborty's resignation are outlined in his resignation letter dated March 17, where he states that certain practices within the bank do not align with his personal values and ethics. Chakraborty served as the non-executive chairman of HDFC Bank, one of India's largest private sector lenders, for an undisclosed period.

RBI and HDFC Bank Board Ease Concerns

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In response to Chakraborty's resignation, the Reserve Bank of India (RBI) and HDFC Bank's board have sought to reassure stakeholders that the bank remains financially sound and well-governed. The RBI has approved a transition arrangement for the position of Part-Time Chairman, as requested by the bank.

The RBI's periodic assessment has revealed that HDFC Bank, classified as a Domestic Systemically Important Bank (D-SIB), has sound financials, a professionally run board, and a competent management team. The RBI has also stated that there are no material concerns on record regarding the bank's conduct or governance.

Interim chair Keki Mistry has further clarified that Chakraborty's resignation has no bearing on the bank's operational profitability. Mistry suggested that the resignation may be related to a personal relationship issue between Chakraborty and the management team.