No material concerns on HDFC Bank's governance and conduct, says RBI
Regulator says bank remains well-capitalised with strong governance and management, approves Keki Mistry as interim chairman for three months
 "No material concerns on HDFC Bank's governance and conduct, says RBI")
The Reserve Bank of India (RBI) on Thursday said there are no material concerns regarding governance or conduct at HDFC Bank, following the resignation of its part-time chairman Atanu Chakraborty.
“HDFC Bank is a Domestic Systemically Important Bank (D-SIB) with sound financials, professionally run board and competent management team. Based on our periodical assessment, there are no material concerns on record as regards its conduct or governance,” the regulator said in a statement.
Exit triggers clarification
Chakraborty resigned with immediate effect, citing certain happenings and practices within the bank over the past two years that were not in line with his personal values and ethics. He, however, clarified that there were no other material reasons for his decision.
Following the resignation, the RBI approved a transition arrangement proposed by the bank, appointing Keki Mistry as part-time chairman for a period of three months.
Bank remains stable
The regulator said the bank continues to remain well-capitalised and financially sound, with adequate liquidity.
“The financial position of the bank remains satisfactory with sufficient liquidity,” RBI said, adding that it will continue to engage with the board and management on the way forward.
Shares of HDFC Bank fell 4.88 per cent to ₹801.85, while the broader market indices were down 2.4 per cent.
Board reiterates confidence
Earlier in the day, Mistry said the board remains fully committed to safeguarding institutional resilience and maintaining stakeholder confidence.
“The bank operates with strong governance standards, robust internal controls and an extremely experienced management team. Our strategic direction, business priorities and execution capabilities continue to remain as always,” he said during an investor call.