RBI extends Keki Mistry’s term as HDFC Bank interim chairman by 3 months
The Reserve Bank of India (RBI) on Thursday said it has approved the three-month extension of Keki Mistry as interim part-time chairman of HDFC Bank.
Mistry, who took over as interim chairman on March 18, will continue in his role until September 18 or until a regular part-time chairman is appointed, whichever is earlier. Mistry had previously served as chief executive officer of the former Housing Development Finance Corp. before its merger with HDFC Bank in 2023.
Mistry’s extension came during HDFC Bank’s board meeting on Thursday to review the findings of law firms appointed to look into concerns raised by former chairman Atanu Chakraborty in his resignation letter dated March 17.
The bank did not disclose the findings of the investigation.
In his letter, Chakraborty had referred to “certain events and practices within the bank” that were “incompatible” with his personal values and ethics. The bank then appointed law firms Trilegal and Wadia Ghandy & Co to check the minutes of the board meetings and see if there were any inconsistencies that Chakraborty had pointed out but did not detail. Mint report.
On June 8, Mint He reported that a US-based law firm was also appointed by the board and that the firm had not yet completed its findings.
In an interview with CNBC-TV18 On March 30, Chakraborty had hinted that the “mis-selling” of Credit Suisse’s term bonds was a point of contention between him and the bank’s management.
The bench reiterated that Chakraborty “did not mention any incidents or practices that were not in line with his personal values and morals.”
RBI extended support to the bank amid the developments. Following Chakraborty’s resignation, the central bank said there were “no material concerns on record regarding his conduct or management”. Lieutenant governor Swaminathan J. said in April that audit-related concerns are addressed on an ongoing basis when they arise.
Separately, a report Indian Express In May, HDFC Bank said it was diverting payments worth ₹45 crore to the Maharashtra State Road Development Corporation (MSRDC) as marketing expenses, effectively generating higher returns than deposits. The bank denied any wrongdoing and said it “strongly denies” allegations of guilt based on selective information.
At the RBI’s post-policy press conference on June 5, Governor Sanjay Malhotra said competition for deposits between banks is positive as long as it remains transparent. In the draft circular issued late on Friday, the RBI suggested giving banks more flexibility in pricing their bulk deposits and ensuring uniformity in announcing deposit interest rates. The proposed changes are aimed at clarifying the RBI’s stance on differential pricing of interest on deposits by banks.
