'I'm not pointing out any wrongdoings at HDFC Bank,' says Atanu Chakraborty after resigning as part-time chairman

'I'm not pointing out any wrongdoings at HDFC Bank,' says Atanu Chakraborty after resigning as part-time chairman

• Atanu Chakraborty resigns as HDFC Bank part-time chairman
• Cites differences in values and ethics, not wrongdoing
• Keki Mistry appointed interim chairman for three months

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Atanu Chakraborty cleared the air on resigning as part-time chairman of HDFC Bank by saying that he's not "pointing out any wrongdoings" at the private lender.

"HDFC Bank is an organisation I nurtured for 5 years. I am not pointing out to any wrongdoings at the bank. My ideologies did not match with the organisation, hence it was time to part ways," he explained the rationale behind his resignation to NDTV Profit on March 19.

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.

"Certain happenings and practices within the bank, that I have observed over last two years, are not in congruence with my personal values and ethics," Chakraborty said in his resignation letter, without elaborating.

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.

"Certain happenings and practices within the bank, that I have observed over last two years, are not in congruence with my personal values and ethics," Chakraborty said in his resignation letter, without elaborating.

"The RBI should be on top of the issue as HDFC Bank is a systematically important bank. But since the RBI has appointed a group insider Keki Mistry in his place it could mean less alarm for shareholders" Amit Tandon, chief executive, Institutional Investor Advisory Services, a proxy advisory firm told Reuters.

After retirement as Economic Affairs Secretary, 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 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 exchange filing.

Chakraborty, a 1985 batch IAS officer of Gujarat cadre, retired as Secretary of Department of Economic Affairs in April 2020. Prior to that, he was Secretary of the Department of Investment and Public Asset Management (DIPAM). Both departments come under the Finance Ministry.

Chakraborty became chairman during the reverse merger process of the bank with the parent entity HDFC Ltd, a leading mortgage firm in the country.

The merger of HDFC Ltd. with HDFC Bank became effective on July 1, 2023, creating a financial behemoth with a combined balance sheet of over Rs 18 lakh crore.

"I joined the Board of HDFC Bank in May 2021. My tenure on the Board saw momentous events like the merger of the bank with HDFC Ltd that created a conglomerate under the bank. This strategic initiative made HDFC bank the second largest Bank in the country. Though, the benefits of merger are yet to fully fructify," he said in his resignation letter.

While expressing gratitude to all the independent directors and non-executive directors, who spared their valuable time and shouldered onerous responsibilities on the board and its committees, he said, there is a great amount of energy and verve in the middle and junior levels of the organisation, that should form the core of a reimaged organisation.