HDFC Bank Engages External Law Firms to Review Chairman’s Resignation; Clarifies Termination of Three Employees

Markets on March 24, 2026, opened on a positive note, with Bank-ltd-100180">HDFC Bank in focus after multiple developments related to governance and internal actions. The bank clarified that the resignation of its former part-time Chairman, Atanu Chakraborty, did not cite any concerns regarding unethical practices, while its Board has approved the appointment of external law firms to review the resignation letter.

HDFC Bank Clarification on Chairman Resignation and Governance Review

Earlier, HDFC Bank had informed about the resignation of its Part-time Chairman and Independent Director, Atanu Chakraborty. Following this, the bank clarified that the resignation letter did not mention any issues or practices that were not aligned with his personal values or ethics.

The Board has approved the appointment of external law firms, both domestic and international, to review the contents of the resignation letter and submit their report within a reasonable timeframe.

Chakraborty joined the board in 2021 and was associated with key developments at the bank during his tenure. He also oversaw the merger of HDFC Bank with HDFC Ltd, a USD 40 billion transaction that created one of India’s largest financial services entities.

RBI Approves Interim Chairman Appointment

The Reserve Bank of India has approved the appointment of Keki Mistry as interim non-executive chairman for a period of three months, effective March 19. The central bank also stated that the lender remains systemically important, financially sound, and professionally managed, with no material governance concerns on record.

Clarification on Employee Termination Following Internal Investigation

Recently, Several reports suggests that HDFC Bank had removed three employees from its services. In response, the bank clarified that the action was part of an internal investigation linked to a regulatory matter involving its Dubai branch. The Governance, Nomination and Remuneration Committee (GNRC) had initiated the probe, and based on the findings, the Disciplinary Committee recommended staff accountability actions, following which the three employees were removed.

The bank further stated that these employees were not part of senior management, the action had no material impact on the bank, and no regulatory or legal proceedings have been initiated against them.

Disclaimer: The article is for informational purposes only and not investment advice.