HDFC Bank on Tuesday said it was appointing external law firms to conduct a review into the resignation letter of former part-time chairman Atanu Chakraborty.
In a shocking letter last week, Chakraborty stepped down from his role, citing differences with HDFC Bank over “values and ethics”.
In a letter filed with the exchanges, HDFC Bank said that Chakraborty’s abrupt exit, which shocked the share markets and raised concerns about governance, did not cite any happenings or practices at the bank that conflicted with his values.
“We wish to inform you that, Mr. Chakraborty did not mention any happenings and practices which were not in congruence with his personal values and ethics,” it said.
Earlier, the country’s largest private-sector lender had mentioned that the resignation may have stemmed from a rift between Chakraborty and HDFC Bank’s management.
To review exactly why Chakraborty quit, the bank said it had appointed independent law firms to conduct a review.
“To reinforce the robust governance standards of the Bank, the Board of Directors of the Bank at its meeting held on March 23, 2026, took a proactive step and approved the appointment of external law firms (domestic and international), to conduct review regarding Mr. Chakraborty’s resignation letter. The said law firms have been advised to provide their report on the same within a reasonable period of time,” HDFC Bank said.
The lender did not provide any details about which law firms it had appointed to conduct the said review. Nor did it specify any timeline.
Atanu Chakraborty’s resignation
Chakraborty, who was a part-time chairman at HDFC Bank, abruptly stepped down from his role effective 18 March, leading to widespread concerns on governance and sending the lender’s shares to new lows.
In the letter addressed to the chairman of the Governance, Nomination, Remuneration Committee, H K Bhanwala, Chakraborty said, “There are no other material reasons for my resignation other than those stated above.”
Chakraborty was appointed as the bank’s part-time chairman effective 5 May 2021, almost a year after he retired as the economic affairs secretary. He became the chairman during the reverse merger process of HDFC Bank and HDFC Limited in 2023.
His term was extended by another three years in 2024, till 4 May 2027.
This is the first time a chairman of HDFC Bank has exited from their role mid-way, raising concerns over the lender’s functioning.
Since his resignation, HDFC Bank has sacked three senior executives over the alleged mis-selling of Credit Suisse’s additional tier-1 (AT-1) bonds at its Dubai International Financial Centre (DIFC) branch.
HDFC Bank share price
Shares of HDFC Bank have nosedived following Chakraborty’s resignation, as investors feared a governance issue at the lender’s office.
Since his resignation, HDFC Bank’s stock price has fallen nearly 12% in three sessions.
On 23 March, HDFC Bank’s share price tanked 4.70% to close at ₹743.75 apiece on the BSE. During intraday trading, the stock fell 5% to touch a new 52-week low of ₹740.95 per share. At the NSE, HDFC Bank stock declined 4.65% to end at ₹744.15 per share.
- The resignation of a high-profile chairman raises serious questions about corporate governance.
- Engaging external law firms underscores the gravity of the issues surrounding the resignation.
- This situation could signal broader implications for the bank’s reputation and stakeholder trust.
