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HDFC Bank chairman Atanu Chakraborty drops surprise resignation citing ethical concerns
Atanu Chakraborty, in his resignation letter as HDFC Bank chairman, said he made the decision after some developments that conflicted with his personal values
HDFC Bank on Wednesday said its chairman Atanu Chakraborty had resigned with immediate effect, with his March 17 letter to the board citing “certain happenings and practices within the bank” that were “not in congruence” with his personal values and ethics.
In a regulatory filing late Wednesday night, India's largest private sector lender said the Reserve Bank of India has approved the appointment of board member and HDFC group veteran Keki Mistry as interim part-time chairman for three months starting March 19.
The bank said Chakraborty submitted his resignation letter to the board on March 17. “We confirm that there are no reasons other than those mentioned in the said letter, for the resignation of Chakraborty,” the bank said.
Ethical concerns cited in resignation
In his letter addressed to the chairman of the bank’s governance, nomination and remuneration committee, Chakraborty said he decided to step down after observing developments that conflicted with his personal values.
“Certain happenings and practices within the bank, that I have observed over last two years, are not in congruence with my personal values and ethics,” he wrote. “This is the basis of my aforementioned decision.”
He also confirmed that there were no additional reasons behind his resignation beyond those stated in the letter.
Oversaw landmark HDFC merger
Atanu Chakraborty joined the board of HDFC Bank in May 2021 and served as part-time chairman and independent director.
During his tenure, the bank completed its historic merger with housing finance major HDFC Ltd - a transaction that created one of the world’s largest financial conglomerates.
In the letter, he described the merger as a “momentous event” that brought HDFC Bank the distinction of being the largest bank in the country, while noting that the full benefits of the integration were yet to be realised.
Thanks board and employees
Chakraborty expressed gratitude to fellow board members and senior management for their dedication and professionalism.
“I would like to express my sincere appreciation to the Board and senior management for their cooperation and support during my tenure,” he wrote, also thanking the bank’s employees and wishing the institution continued success.
He further requested company secretary Kunal Parekh to record the resignation and file necessary intimations with the Registrar of Companies and other regulatory authorities.
