HDFC Bank hires independent law firms to review resignation of Chairman Atanu Chakraborty

HDFC Bank said on Tuesday that it has hired independent law firms from India and abroad to review the resignation letter of its former part-time chairman, Atanu Chakraborty. He stepped down last week, mentioning differences related to “values and ethics.”

The bank, in its stock exchange filing, said that Chakraborty did not point out any specific incident or wrongdoing that went against his values. It also mentioned that he didn’t give any other major reason apart from what was already shared. The idea behind bringing in external law firms is to make sure everything is reviewed fairly and to maintain transparency.

Chakraborty resigned on March 18. In his letter, he wrote that over the last two years, he had noticed certain things in the bank that didn’t match his personal values. Later, he clarified that his decision was not because of any wrongdoing but simply due to a difference in thinking.

After his resignation, the Reserve Bank of India approved Keki Mistry as the interim non-executive chairman for three months starting March 19. The RBI also said that the bank is financially stable and well-managed, and there are no major governance issues. Chakraborty had joined the board in 2021 and was part of the major merger between HDFC Bank and HDFC Ltd, which created a huge financial services group.

Reports say that the bank has been looking into whistleblower complaints from the past few years. Between FY20 and FY25, there were 747 complaints. In FY24, 156 complaints were recorded, and action was taken in 55 cases. In FY25, out of 97 complaints, 41 saw action, mostly related to fraud, forgery, and improper practices.

Recently, three senior employees also left the bank during an internal investigation linked to the alleged mis-selling of bonds connected to Credit Suisse. These exits happened soon after Chakraborty’s resignation and affected market sentiment.

There were also reports of differences between Chakraborty and the board over the reappointment of CEO Sashidhar Jagdishan and the possible appointment of Jimmy Tata to the board. Since all this happened, the bank’s shares have dropped by around 12%. Even though HDFC Bank has said there are no major issues inside the company, the situation has raised some questions about its internal decisions and governance.