RBI sees no governance concerns at HDFC Bank after Atanu Chakraborty's exit, approves interim transition
Mar 19, 2026
Synopsis
The Reserve Bank of India has approved a transition plan for HDFC Bank's part-time chairman. The central bank stated there are no major concerns regarding the bank's governance or conduct. HDFC Bank is described as a strong, well-capitalized institution with a capable board and management. The RBI will continue discussions with the bank's leadership on future steps.
The Reserve Bank of India on Thursday said it has taken note of recent developments at HDFC Bank and approved a transition arrangement for the position of part-time chairman, while asserting that there are no material concerns regarding the lender’s governance or conduct.
In a statement, the central bank described HDFC Bank as a Domestic Systemically Important Bank (D-SIB) with strong financials, a professionally run board and a competent management team. “Basis our periodical assessment, there are no material concerns on record as regards its conduct or governance,” the RBI said.
It added that the bank remains well-capitalised, with a satisfactory financial position and adequate liquidity, seeking to reassure markets amid heightened scrutiny following recent board-level changes. The RBI also said it will continue to engage with the bank’s board and management on the way forward.
The clarification comes in the wake of the abrupt resignation of Atanu Chakraborty as part-time chairman and independent director, citing concerns over “certain happenings and practices” that were not aligned with his personal values and ethics.
In a regulatory filing earlier in the day, HDFC Bank reiterated that there were no reasons behind Chakraborty’s exit other than those stated in his resignation letter, in an apparent bid to quell speculation around governance issues.
Following his departure, the RBI approved the appointment of Keki Mistry as interim part-time chairman for a three-month period starting March 19, 2026.
Chakraborty, who joined the board in May 2021, had overseen a critical phase including the merger with HDFC Ltd that created one of India’s largest financial conglomerates, though he had noted that the full benefits of the integration are yet to materialise.
His exit, coupled with remarks on internal practices, had drawn attention to governance standards at large financial institutions, prompting the RBI’s reassurance on the bank’s overall stability and oversight.
HDFC share price was down 4.5% to Rs 804.4, as of 11:12 a.m.
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[The Economic Times]
