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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