HDFC Bank Chairman Atanu Chakraborty resigns, citing differences with management

The non-executive Chairman of the country’s largest private lender, Atanu Chakraborty, resigned unceremoniously on Wednesday afternoon (March 18), citing differences with the board. The bank told exchanges that the RBI has approved the appointment of Keki Mistry as the part-time chairman of HDFC Bank for a period of three months.”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,” Atanu Chakraborty stated in his resignation letter.

Chakraborty — former economic affairs secretary of India — specifically thanked the independent directors on the bank’s board.
Also Read: HDFC Bank gets an upgrade from Kotak who sees ‘limited downside’ on the stock“I observed a great amount of energy and verve in the middle & junior levels of the organisation, which should form the core of a reimaged organisation. I also place on record my sincere appreciation for Secretarial, Compliance, Audit, and Group oversight functions,” he said in the letter.

However, the current executive directors on the bank’s board include CEO and MD Sashidar Jagdishan, Deputy MD Kaizad Bharucha, and executive director Bhavesh Zaveri.

Of them, Zaveri is on his way out as his term ends in April 2026. “Bhavesh Zaveri has requested not to seek reappointment. He seeks to explore opportunities outside the banking sector, including in the group companies, if possible,” the bank had said in an exchange filing in January this year.Also Read: HDFC Bank’s AI push could change how IT vendors get paid

Two different people with direct knowledge of the matter said that it was the Reserve Bank of India that expressed discomfort with the continuation of Zaveri on the board of the bank. Zaveri is part of the promoter group at Aurionpro Solutions — a tech vendor to the bank. The company is headed by Zaveri’s brother, Paresh Zaveri, as CEO and MD.

Meanwhile, the sources have told CNBC-TV18 that Chakraborty was not in favour of an extension to Jagdishan and wasn’t able to garner support on this from the board on this. This is what led to an unceremonious exit, a source close to the bank said.

Jagdishan’s current term is ending on 26 October 2026. “Sashi wasn’t initially willing to continue at the top, but now he is convinced. There is no other way out. There is a severe talent dearth at the top in private banks,” a senior RBI official said.

This is not the first time there have been frictions on the board of HDFC Bank. In the build-up to the IPO of the bank’s shadow banking subsidiary, HDB Financial Services Ltd, the opinion of the board was split. On one side, Chakraborty batted for the IPO, while Jagdishan had personally invited the Japanese MUFG for a stake sale. “There were differences over the valuation part,” says yet another source.

The bank has also gone through severe turbulent times in the past. The merger with its erstwhile parent — HDFC Ltd — sent the bank’s credit-deposit ratio for a toss. Then the private banking team based in Dubai faced allegations of massive mis-selling.