“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. This is the basis of my aforementioned decision,” Chakraborty said in his resignation letter. “I confirm that there are no other material reasons for my resignation other than those stated above,” he added.
The Reserve Bank of India (RBI) has approved the appointment of former HDFC vice chairman Keki Mistry as interim part-time chairman for three months, the bank said.
Chakraborty, a former bureaucrat who earlier served in the Department of Financial Services, joined HDFC Bank’s board in May 2021. During his tenure, he oversaw key developments, including the merger of HDFC Bank with mortgage lender HDFC, creating India’s second-largest bank by assets.
The sudden resignation of the chairman will raise concerns among investors. HDFC Bank is designated by the banking regulator as one of India’s three systemically important banks, alongside ICICI Bank and State Bank of India. It is the country’s second-most valued company after Reliance Industries, with a market capitalisation of ₹12.9 lakh crore and deposits of ₹28.5 lakh crore.
“There were murmurs that the chairman and senior management were not in sync on many issues, but these were not openly discussed,” said a former HDFC Bank employee aware of internal developments.
In his letter, Chakraborty thanked the board and senior management for their support and acknowledged the contribution of independent and non-executive directors who took on significant responsibilities on the board and its committees.
He said it had been a privilege to contribute to the bank’s growth and governance, noting the strong energy and drive he observed among mid- and junior-level employees, which he said should anchor a re-imagined organisation.