HDFC Bank appoints external law firms to review chairman’s abrupt exit

Atanu Chakraborty says the appointment of law firms is HDFC Bank's internal decision and he hasn't been approached by the lender on the move.

HDFC Bank Ltd. has appointed external law firms to review the circumstances of the abrupt resignation of its part-time chairman, in what can be seen as a move to shore up investor confidence in India's largest private lender.

The appointment of external law firms to look into Atanu Chakraborty's abrupt exit is seen as a move to shore up investor confidence in HDFC Bank. (Reuters)

The board of directors of the Mumbai-based bank has approved the “proactive” step to reinforce the firm’s governance standards, according to an exchange filing on Tuesday (24 March 2026). The law firms will look into Atanu Chakraborty's resignation letter, assess the situation leading up to his exit and submit a report “within a reasonable period of time”.

Chakraborty, HDFC Bank's part-time chairman since 2021, stepped down unexpectedly last Wednesday over “ethical” differences with the bank, offering no details. His resignation sparked investor worries and triggered a slide in the stock. Chakraborty later walked back on some of his comments, telling a local television channel that his departure was “routine” and not indicative of any wrongdoing at the firm.

The rift came down to differing views over accountability, particularly over client losses tied to risky bonds sold by Credit Suisse and recent restrictions imposed on HDFC Bank in Dubai, Bloomberg News reported citing people familiar with the matter. Late on Monday, the lender said it had removed three employees following an internal investigation.