India’s HDFC Bank said late on Wednesday that its part-time chairman, Atanu Chakraborty, had resigned citing differences with the lender over “values and ethics”, and appointed insider Keki Mistry as interim part-time chairman.
US-listed shares of HDFC Bank, India’s largest private-sector lender, slipped 7% following the announcement. Its Mumbai-listed shares had closed 0.3% lower before the news on Wednesday.
“Certain happenings and practices within the bank, that I have observed over the last two years, are not in congruence with my personal values and ethics,” Chakraborty said in his resignation letter, without elaborating. He could not be immediately reached for comment.
“The RBI should be on top of the issue as HDFC Bank is a systemically important bank. But since the RBI has appointed a group insider, Keki Mistry, in his place, it could mean less alarm for shareholders,” said Amit Tandon, chief executive, Institutional Investor Advisory Services, a proxy advisory firm, which counts HDFC Bank among its shareholders.
Chakraborty was appointed as part-time chairman in April 2021 for a three-year term and reappointed in May 2024 through May 4, 2027.
During his tenure, HDFC Bank merged with housing finance firm HDFC Ltd in a $40 billion deal, creating a financial services behemoth.
In his resignation letter, Chakraborty noted that the benefits of the 2022 merger were “yet to fully fructify”.
The RBI has approved the appointment of long-time group insider Keki Mistry as an interim part-time chairman for three months, effective March 19, the bank said in its filing.
Reuters
