HDFC Bank’s part-time chairman and independent director Atanu Chakraborty has resigned with immediate effect, citing differences between his personal values and certain practices within the organisation.
In his resignation letter, Chakraborty stated that developments within the bank over the past two years were “not in congruence” with his ethics.
Resignation linked to value differences
Chakraborty clarified that there were no other material reasons behind his decision apart from the differences he observed.
Speaking after his exit, he said, “My ideologies did not match with the organisation, and hence it was time to part ways,” while adding that he was not alleging any wrongdoing.
He had joined the board in May 2021 and was part of key developments, including the merger of HDFC Ltd with the bank, which created one of India’s largest financial institutions.
Bank acknowledges contribution
In an official exchange filing, HDFC Bank confirmed that there were no additional reasons for his resignation beyond those mentioned in his letter.
The bank’s board expressed appreciation for his contribution and wished him success in his future endeavours.
Interim chairman appointed
Following the resignation, the Reserve Bank of India approved the appointment of Keki Mistry as interim part-time chairman for a period of three months starting March 19.
Mistry previously served as vice-chairman of HDFC Ltd before its merger with the bank.
Shares react to leadership change
The development had an immediate impact on market sentiment.
HDFC Bank’s US-listed shares fell sharply, while in Indian markets, the stock declined by around 4.73 per cent, reflecting investor concerns.
Brokerage firm JPMorgan maintained a “neutral” rating on the stock, noting that it may remain under pressure amid leadership changes and broader market uncertainties.
Chakraborty, a retired IAS officer, has previously held key roles in the Ministry of Finance and played a significant part in economic policy and budget formulation.