HDFC Bank shares continue to trade in the red following Chakraborty’s sudden exit; Check what analysts said HDFC Bank’s non-executive chairman, Atanu Chakraborty, abruptly resigned on March 18, citing differences over “values and ethics.” The management of the country’s second-largest lender described the reason as baffling, as Chakraborty did not provide specific instances despite repeated requests. Keki Mistry, a veteran of the HDFC Bank Group, was appointed as interim chairman, stating there may have been “relationship issues” between Chakraborty and the executive leadership but found no “substantive” concerns behind the departure. Mistry emphasized that the bank’s operations and governance remain stable. This marks the first time the part-time chairman of HDFC Bank has left midway, raising concerns about the bank’s functioning. JPMorgan noted that the chairman’s exit adds to existing macroeconomic challenges, potentially weighing on investor sentiment and increasing market volatility in the near term. The firm highlighted two key points from Chakraborty’s resignation letter: his mention of “certain happenings and practices within the bank… not in congruence with my personal values and ethics” and the fact that the benefits of the HDFC Bank–HDFC Ltd merger have not yet fully materialized. Analysts suggest the stock is likely to face continued pressure following the resignation announcement, with the impact amplified by a softer macroeconomic environment and geopolitical uncertainties. They warned that the reasons cited could signal potential material disagreements between the board and management, which might affect decision-making and execution. JPMorgan noted that while the letter does not allege specific misconduct, the perception alone could weigh on sentiment until credible steps are outlined and implemented.#ubs #hdfc_bank #jpmorgan #keki_mistry #atanu_chakraborty
Atanu Chakraborty resigned as part-time chairman and independent director of HDFC Bank on March 18, 2026, citing ethical concerns over certain practices within the bank. In his resignation letter, he stated that the observed actions over the past two years “are not in congruence with my personal values and ethics,” which led to his decision to step down. He emphasized that there were no other material reasons for his resignation beyond those outlined in the letter. HDFC Bank confirmed in a regulatory filing that Chakraborty’s resignation was solely based on the reasons he provided. The bank also noted that it had applied for approval to appoint Keki Mistry as interim part-time chairman, which was granted by the Reserve Bank of India on the same day. Mistry will hold the position from March 19, 2026, for a three-month period. Chakraborty joined the bank’s board in May 2021, a tenure that coincided with significant developments, including the merger of HDFC Bank with HDFC Ltd. This merger created a financial conglomerate, positioning HDFC Bank as the second-largest bank in the country. In his resignation letter, Chakraborty acknowledged the strategic initiative but noted that “the benefits of the merger are yet to fully fructify.” The resignation comes amid ongoing discussions about governance and operational practices within the banking sector. Chakraborty’s departure marks a notable shift in leadership for HDFC Bank, which has been navigating challenges related to regulatory compliance and competitive pressures in the industry. The interim chairman’s role will be critical in maintaining stability during the transition period.#reserve_bank_of_india #hdfc_bank #atanu_chakraborty #keki_mistry #hdfc_ltd
