HDFC Bank's interim chairman rules out 'material issues' at lender

Keki Mistry says board unaware of any governance concerns behind Atanu Chakraborty's exit; assures 'strong controls' and stable leadership

Keki Mistry, who is interim part-time chairman of HDFC Bank following Atanu Chakraborty’s resignation, said on Thursday that there are “no material issues” at the lender.

 

“There was no power struggle in the bank,” Mistry said during an analyst call. “On behalf of the board and in full concert with the executive leadership, I wish to assure all stakeholders that there are no material matters at this point of time. Based on our discussions, there were no specific happenings and practices that were brought to our attention.”

 

He added that the board had not been highlighted any specific operational or governance concerns.

   

Chakraborty resigned as part-time chairman and independent director with immediate effect, citing certain happenings and practices over the past two years that did not align with his personal values and ethics.

 

However, Mistry said the board was unaware of any material issues that could have led to the resignation.

 

“I would not have taken on this responsibility at the age of 71 if it did not align with my principles and my level of integrity that I would expect from the bank,” he said.

 

Mistry has been appointed interim part-time chairman for three months, effective March 19.

 

“The board remains fully committed to safeguarding institutional resilience and index of confidence. The bank operates with strong governance standards, robust internal controls and an extremely experienced management team,” Mistry said.

 

“Our strategic direction, business priorities and execution capabilities continue to remain as always,” he added.

 

The analyst call included Sashidhar Jagdishan, the bank’s managing director and chief executive officer, along with board members Sunita Maheshwari, Lily Vadera, Harsh Bhanwala and Renu Karnad.

 

HDFC Bank shares were down nearly 5 per cent on the BSE, trading at Rs 806.25 a little before noon.

 

Management continuity

 

Jagdishan reassured stakeholders that the bank will not undertake any action that could harm its reputation.

 

“As a large organisation, there could be errors and omissions but never will we do anything that will cause embarrassment to anyone, including our own conscience,” he said.

 

Jagdishan’s term is due for renewal in October 2026. Mistry said, “…it is something that will be considered by the nomination and remuneration committee. There is still time to do that and obviously at the appropriate time, the committee will meet and we will take it up on the board. Nothing changes as far as that is concerned”.

 

“He has been running the bank successfully for the last many years and we all hope that he will continue to grow with the team devotion that he has over these years”, Mistry said.

 

He also clarified that while there may have been minor differences between Chakraborty and the management, there was nothing material.