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New HDFC chairman Keki Mistry breaks silence after Atanu Chakraborty's shock exit
In his first remarks after taking charge as HDFC Bank chairman, Keki Mistry said the board remains committed to maintaining confidence in the bank.
HDFC Bank’s newly appointed interim chairman Keki Mistry on Thursday sought to reassure investors and stakeholders that the bank remains stable and that there are no material concerns following the sudden resignation of chairman Atanu Chakraborty over differences on “values and ethics”.
In his first remarks after taking charge, Mistry said the board remains committed to maintaining confidence in the country’s largest private-sector lender.
“The board remains committed to safeguarding investor confidence,” Mistry said, adding that the bank wanted to assure all stakeholders that there were “no material matters at this point of time”.
HDFC Bank’s chief executive also emphasised continuity in the lender’s operations. “We will continue to ensure that trust in the bank is maintained,” the CEO said.
The reassurance came after Atanu Chakraborty stepped down with immediate effect, citing ethical concerns in a resignation letter dated March 17.
“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,” Chakraborty wrote in the letter to the board, without elaborating on the issues.
In a regulatory filing late Wednesday night, HDFC Bank said the Reserve Bank of India (RBI) had approved the appointment of board member and HDFC group veteran Mistry as interim part-time chairman for three months starting March 19.
Atanu Chakraborty, a former bureaucrat, had served as the bank’s part-time chairman since April 2021 and was reappointed in May 2024 for a term running until May 2027. During his tenure, HDFC Bank completed its landmark merger with Housing Development Finance Corp. (HDFC Ltd), creating one of the world’s largest financial services groups.
In his resignation letter, Chakraborty described the merger as a “momentous event” for the institution but noted that the full benefits of the integration were yet to be realised.
The unexpected departure rattled investors, with HDFC Bank’s US-listed shares falling about 8 per cent after the announcement. Its Mumbai-listed shares had earlier closed marginally lower before the news was disclosed.
