HDFC Bank appoints external law firms to review Atanu Chakraborty’s resignation letter — ‘Did not mention…’

Private lender HDFC Bank on Tuesday said it has appointed outside law firms to examine former part-time chairman Atanu Chakraborty’s resignation letter.

In a shocking letter last week, Chakraborty resigned from his post, citing differences with HDFC Bank over “values ​​and ethics”.

In a letter sent to stock exchanges, HDFC Bank said Chakraborty’s sudden exit, which shocked the share markets and raised concerns about management, did not indicate any incident at the bank that did not match its values.

The statement said, “We would like to point out that Mr. Chakraborty did not mention any events or practices that were not in line with his personal values ​​and moral rules.”

Earlier, the country’s largest private sector lender had stated that the resignation might have been due to infighting between Atanu Chakraborty and the management of HDFC Bank.

The bank said it had appointed independent law firms to conduct a review to examine exactly why Chakraborty left.

HDFC Bank said, “In order to strengthen the Bank’s sound governance standards, the Bank’s Board of Directors in its meeting held on March 23, 2026, took a proactive step and approved the appointment of external (domestic and international) law firms to conduct a review of Mr. Chakraborty’s resignation letter. The said law firms have been advised to submit their reports on the same within a reasonable time.”

The lender did not provide any details about which law firms it appointed to conduct the review. He didn’t specify any timeline either.

Atanu Chakraborty’s resignation

The sudden departure of Atanu Chakraborty, who was part-time chairman at HDFC Bank, effective March 18, sparked widespread concerns over governance, sending the lender’s shares falling to new lows.

In his letter addressed to Governance, Nomination, Remuneration Committee chairman HK Bhanwala, Chakraborty said “there are no other financial reasons for my resignation other than those mentioned above.”

Chakraborty has been appointed as part-time chairman of the bank from May 5, 2021, almost a year after his retirement as economic affairs secretary.

His term was extended for another three years in 2024, until May 4, 2027.

This is the first time that a chairman of HDFC Bank has quit his job midway, raising concerns about the functioning of the lender.

Since his resignation, HDFC Bank has suspended three senior executives over alleged mis-selling of Credit Suisse’s additional tier 1 (AT-1) bonds at its Dubai International Financial Center (DIFC) branch.

Atanu Chakraborty became the chairman in the reverse merger process of HDFC Bank and HDFC Limited in 2023.

HDFC Bank share price

Shares of HDFC Bank fell sharply after Atanu Chakraborty’s resignation as investors feared a management problem at the lender’s office.

Since his resignation, HDFC Bank stock price has fallen nearly 12% in three sessions.

On March 23, HDFC Bank share price closed 4.70% higher. ₹743.75 per capita on BSE. During intraday trading, the stock fell 5%, hitting a new 52-week low. ₹740.95 per share. HDFC Bank shares down 4.65% on NSE ₹744.15 per share.