The exit comes at a crucial time as HDFC Bank continues to navigate integration challenges following its merger with HDFC Ltd.
BY PC Bureau
New Delhi, March 19: Flagging concerns over internal functioning, Atanu Chakraborty has stepped down as part-time chairman and independent director of HDFC Bank with immediate effect, marking an abrupt exit at a time when the lender is navigating post-merger integration challenges.
In a letter to the Chairman of the bank’s Governance, Nomination and Remuneration Committee, Chakraborty said “certain happenings and practices” he had observed over the past two years were not aligned with his personal values and ethics, and formed the basis of his decision. He added that there were no other material reasons behind his resignation.
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Chakraborty, who joined the board in May 2021, reflected on key milestones during his tenure, including the merger with HDFC Ltd, which created a financial conglomerate and made HDFC Bank the country’s second-largest lender. However, he noted that the full benefits of the merger are yet to be realised.
While reports suggest unease within the board over the bank’s functioning, Chakraborty expressed gratitude to fellow directors and senior management for their cooperation and support.
In a regulatory filing, HDFC Bank said there were no reasons for the resignation beyond those stated in Chakraborty’s letter. The board acknowledged his contributions and wished him success in his future endeavours.
Meanwhile, the Reserve Bank of India has approved the appointment of Keki Mistry as interim part-time chairman for three months from March 19.
Background
A retired IAS officer of the Gujarat cadre, Chakraborty previously served as Secretary in the Department of Economic Affairs during 2019–20, where he oversaw economic policymaking and the Union Budget process. He has also held key roles in the Finance Ministry and the Gujarat government, contributing to infrastructure appraisal, subsidy management, and reforms in financial and procurement systems.
Market Impact
The sudden exit has put the stock under pressure. U.S.-listed shares of HDFC Bank (ADRs) fell over 7% overnight before trimming losses, while in domestic trade the stock dropped 4.73% to ₹800.40 in early deals, down from ₹842.95.
Brokerage JPMorgan maintained a “neutral” rating with a target price of ₹1,090, but cautioned that the stock could remain weak in the near term due to the leadership change and broader macro uncertainties.
HDFC Bank shares are currently hovering near their 52-week low and have declined about 8% over the past month, reflecting investor caution amid both internal developments and global volatility.
