HDFC Bank has sought to calm investor concerns following the abrupt resignation of its part-time chairman Atanu Chakraborty, with the board firmly denying any internal power struggle.
Interim chairman Keki Mistry, who has been appointed for a three-month term starting March 19, assured stakeholders that the bank remains stable with no operational or governance issues.
Speaking during a conference call, Mistry said the board’s oversight mechanisms are fully functional and there have been no significant concerns affecting the institution. He emphasized that he would not have accepted the role if there had been any compromise on the bank’s integrity.
Addressing speculation, Mistry clarified that while minor interpersonal differences can occur in any organization, there has been no serious disagreement at the board level. “There is no power struggle in the bank,” he reiterated.
Board members also expressed surprise over Chakraborty’s resignation, stating that he did not provide any specific reasons despite repeated queries. His exit letter, which referenced concerns about certain practices not aligning with his personal values, had earlier triggered market uncertainty.
Managing Director and CEO Sashidhar Jagdishan said the former chairman had been asked to reconsider his decision and elaborate on his concerns. Chakraborty later clarified that he was not alleging any wrongdoing but cited differences in personal ideology.
The resignation has also led to market speculation around leadership decisions, including the future reappointment of the CEO. Mistry noted that the matter would be reviewed by the nomination and remuneration committee at an appropriate time.
Despite reassurances, analysts remain cautious, viewing the episode as a governance concern that may impact investor sentiment in the short term.
The development comes at a crucial time for the bank, which recently completed its merger with HDFC Ltd and is navigating regulatory and market challenges.
HDFC Bank Denies Power Struggle, Assures Stability After Chairman’s Exit
