HDFC Bank has reiterated its dedication to upholding top-notch corporate governance practices, as per its annual report. The bank addressed concerns raised by former chairman Atanu Chakraborty in his resignation letter, stating that these concerns were not backed by the evidence reviewed and witness interviews. Interim part-time Chairman Keki M. Mistry emphasized that the bank remains firmly grounded in robust corporate governance principles and values.
Chakraborty’s resignation as part-time chairman and independent director in March led to discussions about the bank’s governance norms. Subsequently, Mistry took on the role of interim part-time chairman. Managing Director and CEO Sashidhar Jagdishan mentioned that the bank engaged domestic and international law firms to assess Chakraborty’s claims in his resignation letter, especially given the bank’s listing of American Depositary Receipts (ADRs) on the New York Stock Exchange.
A special committee, comprising solely independent directors, was formed by the board to supervise the legal review and ensure proper information exchange between the bank and the law firms. Jagdishan highlighted that the review encompassed board minutes, meeting materials, communications, and interviews with independent directors and senior management members for the two years leading up to Chakraborty’s resignation.
The bank disclosed the findings of the external law firms on June 26, indicating that Chakraborty’s assertions in his resignation letter were not validated by the evidence and interviews. Mistry reiterated the bank’s unwavering commitment to upholding transparency, accountability, and oversight standards. Subsequent to the review, Rajiv Kumar was appointed as part-time chairman and independent director, pending approvals from the Reserve Bank of India and the bank’s shareholders.
