Atanu Chakraborty, part-time chairman of HDFC Bank, has stepped down with immediate effecta move that has drawn sharp attention on Dalal Street and raised questions around internal practices at India’s largest private sector lender.
In his resignation letter, Chakraborty flagged concerns over the bank’s internal functioning, stating that “certain happenings and practices within the bank” over the past two years were “not in congruence with my personal values and ethics”.
He added that there were no other material reasons behind his decision.
The sudden exit, coupled with the unusually candid language in the letter, has put the spotlight on the bank’s governance standards, even as the lender continues to navigate a complex post-merger phase.
A CAREER IN POLICY AND FINANCE
Chakraborty is a retired Indian Administrative Service (IAS) officer from the Gujarat cadre, with over three decades of experience in public policy and financial administration.
He served as Secretary in the Department of Economic Affairs under the Ministry of Finance and also held roles in the Department of Investment and Public Asset Management, where he was involved in the government’s disinvestment programme.
Following his retirement from the civil services, Chakraborty moved into corporate roles, bringing policy depth and regulatory experience to board-level positions.
ROLE AT HDFC BANK
He joined the board of HDFC Bank in May 2021 as an independent director and later became the part-time chairman.
His tenure coincided with a landmark phase for the bank, including its merger with HDFC Ltd. In his resignation letter, Chakraborty described the merger as a “momentous” development that “created a conglomerate under the bank”, while noting that “the benefits of merger are yet to fully fructify”.
WHY HIS EXIT HAS RAISED QUESTIONS
What has stood out to market participants is the nature of the remarks made in the resignation letter.
References to internal practices not aligning with personal values and ethics are uncommon in exits at large, systemically important banks, especially without further elaboration. While Chakraborty did not specify the issues, the wording has led to broader questions around internal processes and oversight.
The bank, in its exchange filing, said there were no reasons for the resignation other than those mentioned in the letter.
WHAT HAPPENS NEXT?
Following his resignation, the Reserve Bank of India has approved the appointment of Keki Mistry as interim part-time chairman for a period of three months.
Investors and analysts will now watch for any further clarity from the bank or regulators regarding the concerns flagged in the resignation.
For now, Chakraborty’s exit introduces an element of uncertainty around a lender that has otherwise been regarded as one of the most stable names in India’s banking sector, even as it continues to integrate operations after its merger with HDFC Ltd.
– Ends
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