Former HDFC Bank Chairman Atanu Chakraborty has expressed dissatisfaction with the legal review of his resignation, stating that it focused more on compliance issues rather than the broader concerns he had raised about certain business practices at the bank. External legal firms appointed by HDFC Bank, Wadia Gandhy and Wilson Soni, based their review on select excerpts from internal interviews and board meeting minutes, as per NDTV Profit. Chakraborty’s resignation was driven by a clash between certain bank practices and his personal values, aiming to prompt board introspection.
Chakraborty noted that the legal review primarily delved into compliance aspects, neglecting the core issues he had highlighted. Despite his requests, he was not provided with the terms of reference or legal framework guiding the review process. Referring to the AT-1 bond mis-selling case during his tenure, Chakraborty acknowledged the bank’s prompt corrective actions but refrained from disclosing the specific practices leading to his resignation, citing confidentiality concerns.
The favorable legal review is expected to facilitate HDFC Bank in expediting the appointment of a permanent chairman and the reappointment of Managing Director and CEO Sashidhar Jagdishan. Chakraborty had resigned in March, citing a misalignment of the bank’s recent developments with his ethical standards, although the bank clarified no specific incidents or behaviors were pointed out. Following his exit, Keki Mistry was appointed as interim part-time chairman by the Reserve Bank of India (RBI) for a three-month term starting March 19.
Chakraborty has emphasized that his departure was rooted in philosophical and strategic differences rather than any misconduct. He joined the bank’s board in 2021 and maintained that his exit was not tied to any malpractice within the bank but stemmed from ideological disparities. Post his resignation, the RBI approved Keki Mistry’s appointment as interim part-time chairman, indicating no significant concerns post-Chakraborty’s exit. Subsequently, the RBI granted a 90-day extension for Mistry as interim chairman.
Shares of HDFC Bank traded lower at Rs 793.35, down by 0.33% on the BSE at 12:45 pm following these developments.
