Tag: HDFCBank

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HDFC Bank chairman had quit after CEO rift

The resignation of Atanu Chakraborty as chairman of HDFC Bank has been linked to a reported leadership conflict with CEO Sashidhar Jagdishan, raising questions about internal dynamics at the country’s largest private lender.

According to reports, differences between Chakraborty and Jagdishan had been growing over key decisions at the top level. A major point of disagreement was said to be related to the extension of the CEO’s tenure. While Chakraborty reportedly opposed the move, most members of the board were in favour, leading to a divide in leadership.

The situation is believed to have escalated over time, eventually resulting in Chakraborty’s decision to step down. His sudden exit surprised investors and market observers, as he was expected to continue in the role until 2027 following his reappointment.

In response to the developments, HDFC Bank has initiated a review of the circumstances surrounding the resignation. External legal experts have been brought in to examine governance processes and assess any concerns raised during the episode. The move is aimed at ensuring transparency and maintaining confidence among stakeholders.

Despite the reports of a power struggle, the bank has sought to reassure investors. Officials have stated that differences of opinion are not uncommon in large organisations and insisted that there are no major governance lapses. The management has maintained that all decisions were taken within the framework of board discussions.

Chakraborty, a former senior bureaucrat, had been serving as part-time chairman since 2021. His departure marks a key leadership change, with the bank now focused on ensuring stability while addressing concerns around internal alignment and governance practices.

The episode has drawn attention due to HDFC Bank’s significant role in India’s financial system. Any signs of leadership instability at such a large institution can impact investor sentiment and market performance. Following the news, the bank’s shares saw some volatility, reflecting concerns among investors.

Also Read: Centre to borrow ₹8.2 lakh cr in 1st half of FY27

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HDFC Bank sacks 3 executives over compliance lapses

HDFC Bank has fired three senior executives after an internal probe found lapses in client onboarding and alleged mis-selling of Credit Suisse AT1 bonds at its DIFC branch in Dubai. Regulators had earlier flagged compliance issues and restricted the branch from adding new clients.

The bank said it conducted a detailed review and took corrective steps, including tightening controls and making leadership changes. The AT1 bonds, considered high-risk, had lost value during the Credit Suisse crisis.

HDFC Bank said it remains committed to strong governance and will work with regulators while focusing on rebuilding customer trust.

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Leaders

HDFC Bank chairman Atanu Chakraborty resigns

India’s largest private sector lender, HDFC Bank, faced a sudden leadership shock as part‑time chairman Atanu Chakraborty resigned with immediate effect, citing “differences over values and ethics” with certain internal practices. Chakraborty, a retired IAS officer who became chairman in 2021 and was re‑appointed in 2024, did not elaborate on the specifics of his concerns, only noting that “certain happenings and practices” over the past two years conflicted with his personal values.

Following the resignation, the Reserve Bank of India (RBI) approved the appointment of veteran banker Keki Mistry as interim chairman for a three‑month term. Mistry, a long‑time executive within the HDFC Group, reassured investors and employees about operational stability and continuity, emphasizing that the leadership transition is smooth and governance remains strong.

The news triggered a sharp market reaction. HDFC Bank shares plunged around 8% in early trading, reflecting investor concern over governance uncertainty and strategic direction. The decline marked one of the steepest intraday drops in recent months, though prices later moderated slightly. The resignation came at a sensitive time as the bank continues to navigate the integration and operational pressures following its merger with HDFC Ltd, creating one of India’s largest financial conglomerates.

In response to the turmoil, the RBI clarified that its supervisory review had found no material governance or financial irregularities at the bank, affirming that it remains well-capitalized, liquid, and operationally sound.

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HDFC bank to charge for some UPI ATM cash withdrawals

HDFC Bank will start charging customers for certain cash withdrawals from ATMs using UPI from 1 April 2026.

Until now, UPI ATM withdrawals were generally free, but the bank said fees will apply in specific situations, especially for withdrawals beyond free limits set for savings accounts.

The move affects customers who frequently take out cash using UPI at ATMs. HDFC said this step aligns with industry practices as banks adjust services and costs. Customers are advised to check their account’s free withdrawal limits to avoid unexpected charges.