HDFC Bank Chairman Resigns Citing Ethical Concerns, Shares Fall 9 pc
New Delhi: In a sudden move, Atanu Chakraborty resigned as chairman of HDFC Bank, the country’s second largest lender, citing ethical concerns. This is the first time that HDFC Bank’s part-time chairman has let down the bank by expressing concerns over its functioning.
In his resignation letter dated March 17, he said, “Some events and practices that I have observed within the bank in the last two years do not coincide with my personal values and moral rules. This is the basis of my decision.”
Shares of HDFC Bank lost nearly 9 percent in Thursday morning trading following the news of his resignation. The blue chip stock fell 8.41 per cent to Rs 772 (52-week low) on the BSE.
The stock fell 8.66 per cent to a 52-week low of Rs 770 on the NSE.
The market valuation of the company decreased by 65,176.48 billion rupees to 12,31,666.45 billion rupees.
In his letter addressed to HK Bhanwala, Chairman, Governance, Nomination, Remuneration Committee, Chakraborty said, “There are no other financial reasons for my resignation other than those mentioned above.”
In a filing filed late evening, HDFC Bank said Chakraborty has tendered his resignation as Part-Time Chairman and Independent Director of the Bank on March 18, 2026 with immediate effect.
The Bank further said, “Although Chakraborty’s resignation letter was dated March 17, 2026, the same letter reached the Bank at 3:17 pm (IST) on March 18, 2026.”
It was further stated in the filing that the Reserve Bank of India has approved the appointment of Keki Mistry as interim part-time chairman of HDFC Bank for a period of 3 months from March 19, 2026, based on the application made by the bank on March 18, 2026.
It is worth noting that Chakraborty has been appointed as part-time chairman from May 5, 2021, almost a year after his retirement as Secretary for Economic Affairs.
His term was extended for another three years in 2024, until May 4, 2027.
Chakraborty, a 1985 batch IAS officer of Gujarat cadre, retired as Secretary, Department of Economic Affairs in April 2020. Prior to this, he was the Secretary of the Department of Investment and Public Asset Management (DIPAM). Both departments report to the Ministry of Finance.
Chakraborty became chairman during the bank’s reverse merger with its parent HDFC Ltd, the country’s leading mortgage firm.
The merger of HDFC Ltd. with HDFC Bank came into force on July 1, 2023, creating a financial giant with a total balance sheet of over Rs 18 lakh crore.
“I joined the Board of Directors of HDFC Bank in May 2021. My tenure on the Board witnessed significant events such as the bank’s merger with HDFC Ltd, creating a holding company under the bank. This strategic initiative has made HDFC Bank the second largest bank in the country. However, the benefits of the merger are yet to come to full fruition,” he said in his resignation letter.
While expressing his gratitude to all the independent directors and non-executive directors who gave their valuable time and assumed heavy responsibilities on the board and its committees, he said there was a huge amount of energy and enthusiasm at the middle and lower levels of the organization, which should form the core of a redesigned organisation.
