HDFC Bank open to fresh probe after Atanu Chakraborty exit: CEO Sashidhar Jagdishan

The CEO added that the bank remains open to scrutiny, even if new concerns emerge.

• HDFC Bank to review past decisions after chairman's resignation
• CEO Jagdishan backs thorough, independent review process
• Bank open to addressing any new concerns raised

Did our AI summary help?

HDFC Bank is open to examining any fresh concerns following the resignation of former chairman Atanu Chakraborty, MD and CEO Sashidhar Jagdishan has stated.

Backing a thorough and independent review process, Jagdishan said the bank will convene multiple board meetings to review past decisions and reassess earlier decisions and address any gaps without hesitation.

"We will convene multiple board meetings, re-examine decisions taken over time and see where we need to improve," he said, adding that the bank would act decisively where required.

“If these are operational issues, we will tighten design and controls. If these are conduct issues, we will be ruthless,” Jagdishan said in an interview with The Economic Times.

Chakraborty resigned on March 19, citing "values and ethics" concerns, triggering uncertainty among investors and shareholders. However, Jagdishan said no such issues had been formally raised during Chakraborty’s tenure.

"If you have concerns, put it through the established process and we collectively address it… he said he had nothing to share," Jagdishan has been cited by the newspaper.

The CEO added that the bank remains open to scrutiny, even if new concerns emerge. “If, hypothetically, he raises a fresh issue that isn’t visible to us today, we will address it,” he said.

Acknowledging the impact on investor sentiment, Jagdishan said the episode had caused "a lot of angst" among stakeholders, particularly retail shareholders. The bank is also exploring legal options, he added, noting that it is consulting experts to examine all possibilities.

The developments come as the lender steps up governance oversight amid heightened scrutiny. According to Jagdishan, differences in views at the board level are part of a healthy system. “If you want to have good governance, you cannot be in a yes-sir mode,” he said.

The bank maintained that its governance framework remains intact and that it will use the episode as an opportunity to strengthen internal processes. "We will take stock of past matters and address all issues, existing or new, without hiding anything,” Jagdishan said.