HDFC Bank's Chakraborty Resigns Citing Internal Practices, Shares Fall
Atanu Chakraborty flags governance concerns in exit letter as ADRs drop and stock slides in Mumbai
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HDFC Bank Ltd’s part-time Chairman Atanu Chakraborty has resigned, citing concerns over internal practices he said did not align with his personal values and ethics.
In a letter to the board, Chakraborty said “certain happenings and practices within the bank” observed over the past two years were not in line with his “personal values and ethics.”
The bank said it received the resignation on March 18 at 3.17 pm, a day after the letter was dated.
The exit triggered a sharp market reaction on Thursday, March 19.
HDFC Bank’s American depositary receipts fell about 7.5% in US trading, while the stock in Mumbai dropped as much as 9% in early trade before trimming losses to around 4.4%.
Chakraborty, who joined the board in 2021, oversaw the $40 billion merger of HDFC Ltd with the bank.
In his letter, he said the benefits of the merger were “yet to fully fructify.”
India’s central bank has approved Keki Mistry as interim part-time chairman for three months starting March 19, the lender said.
The abrupt departure adds to investor concerns around governance and execution at India’s largest private-sector lender as it continues to integrate operations following the merger.
Broader market sentiment also remained weak, with Indian equities declining amid rising oil prices and global uncertainty linked to Middle East tensions and a hawkish stance from major central banks.
