Mumbai, March 24: HDFC Bank has announced that its board has approved the appointment of both domestic and international external legal firms to review the resignation letter of former part-time chairman and independent director, Atanu Chakraborty. This decision aims to strengthen governance standards within the bank.
The bank stated in an exchange filing that this decision was made during a board meeting on March 23. The appointed legal firms will be tasked with reviewing Chakraborty’s resignation and submitting their report within a specified timeframe.
This move reflects the bank’s commitment to transparency and robust corporate governance practices. The decision follows Chakraborty’s resignation on March 18, which he stated was due to certain developments within the bank over the past two years that did not align with his personal values and ethics. However, the bank clarified that he did not specify any particular incident or practice that contradicted his values.
Chakraborty has publicly stated that his resignation was not related to any misconduct or malpractice within the bank but was due to differences in ideologies and perspectives. He joined the bank’s board in 2021.
Following his resignation, the Reserve Bank of India (RBI) approved the appointment of Keki Mistry as interim part-time chairman for a three-month period starting March 19. Mistry indicated that there are no significant issues facing the bank following Chakraborty’s departure.
The bank reiterated that the purpose of the external review is to enhance governance oversight and ensure clarity regarding the circumstances of the resignation.
Reports suggest that HDFC Bank has dismissed three employees, including senior officials, following an internal investigation into the alleged improper sale of high-risk AT1 bonds to NRI clients through its foreign operations.
As of Tuesday, HDFC Bank’s shares rose by 1.79% to ₹757.45 at noon. However, the stock has declined by over 9% in the past week.
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