HDFC Bank’s part-time chairman quits citing 'certain bank practices'

The central bank and HDFC said there are no material concerns or matters in separate statements.

The Reserve Bank of India (RBI) has “taken note” of recent developments in HDFC Bank, which saw its part-time chairman and independent director resign.

In his letter dated 17 March 2026, Atanu Chakraborty stated that his reasons for resignation are “certain happenings and practices within the bank, that I have observed over the last two years”, which he said are not in congruence with his personal values and ethics.

“I confirm that there are no other material reasons for my resignation other than those stated above,” Chakraborty wrote.

The RBI said that it has approved HDFC Bank’s request for a transition arrangement for the part time chairman position, with Keki Mistry taking over the role for the next three months.

The bank has “no material concerns on record as regards its conduct or governance,” the RBI said in a 19 March statement posted on its website.

Mistry, on behalf of the HDFC Bank’s board, addressed the resignation the same day, stating that “There are no material matters at this time.”

“Based on our discussions there were no specific happenings and practices that were brought to our attention. There were no specific operational or other issues that have been highlighted,” Mistry wrote in an online post.

Mistry said that the board’s oversight mechanisms remain fully operational.

Mistry also said that the merger with HDFC Ltd. last July 2023 boosted HDFC Bank’s balance sheet and also gave it a stronger presence in key products and services.

In his resignation letter, Chakraborty had specifically named the merger, stating that “benefits of the merger are yet to fully fructify.”

Chakraborty expressed gratitude to all the independent directors and non-executive directors. He also stated his appreciation for the board, the senior management, as well as the secretarial, audit, and group oversight functions of HDFC Bank.

He also pointed out a “great amount of energy and verve in the middle and junior levels of the organisation,” which he said form the core of a reimaged organisation.