HDFC Bank's part-time Chairman Atanu Chakraborty has resigned suddenly, citing internal practices at the bank that clashed with his personal values and ethics. The announcement, made late on Wednesday, triggered a sharp drop in the bank's shares and intensified scrutiny on India's largest private lender by assets.
Chakraborty's resignation letter, disclosed by the bank late on Wednesday, stated that "certain happenings and practices within the bank" that he had observed over the last two years were "not in congruence with my personal values and ethics." He confirmed there were "no other material reasons" for his resignation. Sources close to the matter described the move as stemming from "personal differences" between Chakraborty and senior management, with friction building for years over his perceived "executive style" as a non-executive chairman.
BOARDROOM TENSIONS ERUPT
In an exclusive report, CNBC-TV18, citing sources, said friction between Chakraborty and some senior management personnel had existed for a few years, as management felt that he was functioning in an executive style as a non-executive chairman. Mistry said that, based on the board's discussions, no specific happenings or practices had been brought to its attention.
The board placed on record its appreciation for Chakraborty's contribution to the bank during his tenure, and interim chairman Keki Mistry sought to reassure investors on a conference call on Thursday. Mistry, stepping in as interim chairman for a three-month RBI-approved term, assured stakeholders: "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." Sources emphasized that regulators, including the Reserve Bank of India (RBI), have raised no concerns, and the exit was "neither directed by RBI nor initiated by the bank." It was, they said, "very much an individual level decision."
HDFC Bank's merger with its parent, HDFC Ltd, took effect on 1 July 2023. Senior exits since then include Rahul Shyam Shukla, group head of commercial and rural banking, who resigned in October 2025, and chief human resources officer Vinay Razdan, who resigned in June 2025.
MARKET SHAKEUP FOLLOWS
HDFC Bank shares fell nearly 9% at Thursday's open to ₹770, from a previous close of ₹843.05, before recovering part of the loss after the 9am analyst call; they traded about 5% lower around midday.
Chakraborty's stature amplifies the fallout. A retired IAS officer and former Secretary of the Department of Economic Affairs, he had chaired the board since May 2021 and oversaw the merger with HDFC Ltd.
INTERIM LEADERSHIP STEPS IN
Keki Mistry, the former vice chairman and chief executive of HDFC Ltd, took over as interim part-time chairman from 19 March after the RBI approved his appointment for three months on 18 March. Mistry added that HDFC Bank is aligned with his principles, stating he would not have taken the responsibility otherwise.
Mistry also told analysts there had been no power struggle at the bank and that it operated with strong governance standards and robust internal controls.
Chief executive Sashidhar Jagdishan told CNBC-TV18 on Thursday that there was no rift and that the chairman's exit came without warning.