Former HDFC Bank Executive Resigns Amid Ethics Concerns
HDFC Bank Chairman Resigns Citing Differences Over Values and Ethics
Atanu Chakraborty, a career bureaucrat with over five decades of experience, has resigned as the part-time Chairman and Independent Director of HDFC Bank. Chakraborty's tenure was marked by differences over "values and ethics".
Background
Chakraborty, a retired 1985 IAS officer of the Gujarat Cadre, has a distinguished career in shaping crucial policy decisions in the government. He worked closely with Prime Minister Narendra Modi during Modi's tenure as Chief Minister of Gujarat, spearheading initiatives to increase private-sector investment in the state. Chakraborty also held key positions in various government organizations, including Managing Director of Gujarat State Fertilizer Company (2011-2014) and Secretary of DIPAM (Department of Investment and Public Asset Management) in the first term of the Modi government (2014-19).
Key Roles and Achievements
As DIPAM Secretary, Chakraborty played a significant role in moving the government away from the 51% stake rule, arguing that the state could retain control of PSUs with a lower shareholding. He achieved a record Rs80,000 crore through divestment in 2018-19 and worked on taking the agenda of 'Minimum government and maximum governance" of the Modi government forward. As Economic Affairs Secretary, he coordinated across ministries and was perceived as someone who "plays by the book".
Tenure at HDFC Bank
Chakraborty was brought in at the time of the merger between HDFC and HDFC Bank. In a January 2023 interview, he noted that the boards of both organizations are very strong, with leaders like Deepak Parekh, Keki Mistry, and Shashi taking their work seriously to ensure the bank remains within the guardrails.
Investor Takeaway
Investors should be cautious of potential regulatory risks and reputational damage to HDFC Bank.
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