The Reserve Bank of India (RBI) declared HDFC Bank as a Domestic Systemically Important Bank (D-SIB) with strong financials and capable management following the resignation of part-time chairman Atanu Chakraborty due to alleged ethical differences. The RBI acknowledged recent developments at HDFC Bank and approved a transition arrangement for the position of Part-Time Chairman as requested by the bank. According to the Central Bank, there are no significant concerns regarding the bank’s conduct or governance based on its periodic assessment.
The bank remains well-capitalized with satisfactory financial standing and ample liquidity, as stated by the Reserve Bank. Keki Mistry, a long-time group insider, has been appointed as the interim part-time chairman for three months, effective March 19, following Chakraborty’s resignation. Mistry assured investors and analysts that there are no major issues at the bank despite the sudden change in leadership, emphasizing that he would not have accepted the role if it conflicted with his values and principles.
During a conference call, Mistry clarified that there was no power struggle within the bank and downplayed any significant issues, highlighting the swift approval of his appointment by the RBI as a testament to the bank’s stability.
