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Atanu Chakraborty is a retired IAS officer of Gujarat cadre of 1985 batch.
HDFC Bank’s part-time chairman and independent director Atanu Chakraborty resigned late on March 18. The bank has given this information in its stock exchange filing.
Chakraborty has raised questions on the working methods of the bank. After his departure, with the approval of the Reserve Bank, Keki Mistry has been made interim chairman for three months from March 19.
After the news of resignation, HDFC shares are down by 5% today. It has fallen by Rs 43 and is trading around Rs 800. HDFC Bank shares have fallen by about 20% this year.
Chakraborty said – Bank’s practice does not match my ethics
Atanu Chakraborty has raised questions on the internal culture and functioning of the bank in his resignation letter. He said that during the last two years, I have witnessed certain incidents and practices within the Bank which are not in line with my personal values and ethics.
Keki Mistry was given command for 3 months
Keki Mistry is currently serving as a non-executive director on the board of the bank. He had been the Vice Chairman and CEO of HDFC Limited before its merger with the bank. In view of his long experience in the banking sector, he has been given command for 3 months.
Keki Mistry on Thursday assured investors and stakeholders that the bank is completely stable. There is nothing to worry about in the bank. Mistry said that the board is committed to maintaining trust in the country’s largest private sector bank.
After assuming charge, Keki Mistry assured that the bank is completely stable and there is nothing to worry about.
Reserve Bank said – There is no serious concern in HDFC
On this matter, the Reserve Bank said that the temporary arrangement sought by the bank regarding the post of part-time chairman of HDFC Bank has been approved by the Reserve Bank.
HDFC Bank is a ‘Systemically Important Bank’ of the country, whose financial condition is strong. The board is working professionally and the management team is very capable.
There is no serious concern at present regarding the functioning or governance of the bank. The bank has adequate capital and liquidity i.e. cash position is also satisfactory. The Reserve Bank will remain in constant touch with the board and management of the bank regarding the way forward.
HDFC became the second largest bank of the country after the merger.
Chakraborty also mentioned the major achievements of his tenure. He told that it was during his time that HDFC Limited merged with the bank, making it the second largest bank in the country. He also added that the full benefits of this merger are yet to be realized.
Atanu Chakraborty is a retired IAS officer of 1985 batch.
Atanu Chakraborty is a retired IAS officer of Gujarat cadre of 1985 batch. During his 35 years of service, he has held important positions like Secretary of Economic Affairs. He has also been the head of the budget making process and investment department.
- In April 2021, Chakraborty was made the chairman of HDFC Bank.
- Was appointed to this post again in May 2024.
- His tenure was to last till May 2027.
Knowledge Box: What is the difference between ‘part-time chairman’ and ‘interim chairman’?
A ‘part-time chairman’ is a person who is not involved in the day-to-day management of the bank, but rather presides over board meetings and provides guidance on policy decisions.
At the same time, ‘Interim Chairman’ is a temporary arrangement, which is appointed when suddenly the post of Chairman becomes vacant and the search for a new permanent Chairman is going on.
Since public money is deposited in banks and they form the backbone of the country’s economy, the approval of the Reserve Bank is mandatory to ensure that the person appointed is ‘fit and proper’ and has the necessary competence and integrity to run the bank.
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