HDFC Bank CEO Sashidhar Jagdishan disclosed that the board urged former Chairman Atanu Chakraborty to reconsider his resignation and clarify the ethics-related concerns he raised. Despite efforts to convince Chakraborty to retract his resignation or elaborate on the issues in his letter, he declined to do so.
Chakraborty resigned earlier in the week, citing discrepancies in the bank’s practices that conflicted with his ethical values. However, the board and management were unable to grasp the specific nature of these concerns as no details were shared.
Following discussions within the nomination and remuneration committee, some board members briefed the Reserve Bank of India on the situation. In response, the regulator appointed Keki Mistry as the interim Chairman for a three-month term.
Despite the unexpected resignation, the bank’s leadership emphasized the absence of significant problems within the organization. They expressed optimism that the bank’s reputation would recover with time and highlighted the strength of its governance standards.
Independent director M.D. Ranganath mentioned that Chakraborty was repeatedly asked to identify particular concerns, but he did not provide any specifics. Director Renu Sud Karnad also expressed surprise at the lack of clarity in the resignation letter’s claims.
Interim Chairman Mistry alluded to a potential personal issue when addressing speculation surrounding the departure but did not elaborate further. The bank aimed to reassure stakeholders that its operations and governance remained steady despite the leadership transition.
