HDFC forms oversight department for sharper board-level updates: Chairman

Chairman Atanu Chakraborty says the new Group Oversight Department will ensure periodic updates to the board on key risks, compliance, audit, and conduct across the group

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HDFC Bank has created a dedicated “Group Oversight Department”, reporting to an Executive Director (ED), which periodically updates the board on critical matters, enabling the board to maintain sharper oversight of risk, compliance, audit, and conduct across the group, said Atanu Chakraborty, Chairman, HDFC Bank, in his message to shareholders at the bank’s annual general meeting (AGM).

 

Having said that, each entity would continue to remain responsible and accountable for its operations.

 

“As we grow larger, we are conscious of our enhanced responsibility towards our enhanced stakeholder base,” said Chakraborty.

 

“Our robust frameworks ensure that all operations are conducted with transparency, accountability and in strict adherence to regulatory requirements. Our effort has been to identify and address any transgression and incentivise adherence to our cherished values of governance, risk management and high standards of customer service,” he said.

 

Additionally, Chakraborty said the bank has approached the regulators for capitalisation of reserves for issuance of “bonus shares” and a change in the capital clause of the Memorandum of Association pursuant to an increase in authorised share capital. 

 

“We believe that the bonus issue would make equity shares of the bank affordable and increase its liquidity,” he said.

 

HDFC Bank’s board has approved the issuance of one bonus equity share for every one equity share held by eligible shareholders of the bank as on the record date, which is August 27.

 

Additionally, Chakraborty said during the year (FY25), the bank focused on operational alignment across the merged entity, maintaining performance stability and balance sheet optimisation and strength.

 

“Our approach remained centred on risk-calibrated growth, prudent provisioning, disciplined execution, growing deposits and profitable loan growth. On account of various measures taken, including compression of credit growth, the CD ratio now stands at 96 per cent,” he said.