In a significant development, Atanu Chakraborty has resigned as the Part-time Chairman and Independent Director of HDFC Bank on March 18, 2026. His resignation comes after he expressed concerns regarding certain practices within the bank that he felt did not align with his personal values and ethics.
Chakraborty, who joined the Board of HDFC Bank in May 2021, cited these governance issues in his resignation letter, stating, “Certain happenings and practices within the bank, that I have observed over last two years, are not in congruence with my personal Values and Ethics.” The bank confirmed that there were no other material reasons for his resignation beyond those he outlined.
The timing of his departure is particularly notable as it follows a transformative period for HDFC Bank, which recently merged with HDFC Ltd. This merger created a financial conglomerate, making HDFC Bank the second largest bank in India. Chakraborty described this merger as a momentous development, although he noted that the benefits are yet to fully fructify.
In the wake of Chakraborty’s resignation, Keki Mistry has been appointed as the interim Part-time Chairman of HDFC Bank for a period of three months starting March 19, 2026. The Reserve Bank of India has approved this appointment, ensuring a smooth transition in leadership.
Chakraborty, a retired IAS officer with over three decades of experience in public policy and financial administration, previously served as Secretary in the Department of Economic Affairs under the Ministry of Finance. His extensive background in governance and finance adds weight to the concerns he raised.
The nature of his remarks in the resignation letter has raised questions about the bank’s governance standards, prompting investors and analysts to seek further clarity from HDFC Bank and regulators regarding the flagged concerns. The scrutiny surrounding this resignation highlights the importance of ethical practices in banking, especially in light of recent mergers that have reshaped the financial landscape.
As the banking community watches closely, the implications of Chakraborty’s departure could resonate beyond HDFC Bank, potentially influencing governance standards across the sector. The call for transparency and ethical practices in banking has never been more critical.
Details remain unconfirmed regarding the specific practices that led to Chakraborty’s resignation, but the fallout from this event is likely to be significant as stakeholders await further developments.
