Private lender HDFC Bank said the resignation of former part-time chairman Atan Chakraborty had led to questions about the bank’s governance standards, but an independent review by external law firms found the impact of his resignation was “not supported” by records reviewed and witness interviews.
Referring to the events following Chakraborty’s resignation in March this year, part-time interim chairman Keki Mistry, in HDFC Bank’s annual report for the financial year 2026-27, said the bank acted quickly in appointing part-time interim chairman with the approval of the Reserve Bank of India.
Mistry said the council has directed both domestic and international law firms to examine whether there is any basis for the concerns mentioned in Chakraborty’s resignation letter. To oversee due diligence and ensure proper and timely communication between the bank and law firms, a special committee consisting of only independent directors was created. The results of the audit were received on June 26, 2026 and reported to the stock exchanges.
Managing director and CEO Sashidhar Jagdishan called Chakraborty’s resignation a “complicated development” that raised questions about the bank’s governance standards.
Jagdishan said the board spoke to analysts and the media the day after the resignation and clarified that during discussions with directors, Chakraborty did not mention any events or actions that were inconsistent with his personal values and ethics.
Since HDFC Bank’s American Depository Receipts (ADRs) are listed on the New York Stock Exchange, both Indian and international law firms have been appointed. The Board of Directors also formed a special committee of independent directors to oversee the review.
According to Jagdishan, the review examined voluminous board minutes, meeting materials, communications and interviews with all independent directors, several members of senior management, including himself, and heads of control and compliance functions, covering the two years leading up to Chakraborty’s resignation.
“The findings of the outside law firms were, in essence, that Mr. Chakraborty’s statement in his resignation letter and its implications were not supported by verified records and witness interviews,” Jagdishan said.
After Atanu Chakraborty stepped down as part-time chairman and independent director of HDFC Bank with effect from closure of business on March 18, 2026, Keki Mistry was appointed as interim part-time chairman after receiving RBI approval.
Subsequently, on June 29, 2026, the Board of Directors appointed former NITI Aayog Vice Chairman Rajeev Kumar as concurrent Chairman and Independent Director, subject to regulatory and shareholder approval.
- Published Jul 11, 2026 at 3:29 pm EST.
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