The Reserve Bank of India (RBI) has stated that there are no material concerns regarding governance or conduct at HDFC Bank, reaffirming confidence in the bank’s overall stability and management.
In an official statement, the regulator described HDFC Bank as a Domestic Systemically Important Bank (D-SIB) with strong financials, a professionally run board, and a competent management team. It added that based on its regular assessments, there are no concerns on record related to the bank’s conduct or governance.
The clarification follows the resignation of part-time chairman Atanu Chakraborty, who stepped down with immediate effect. He cited certain developments and practices over the past 2 years that did not align with his personal values and ethics, while noting there were no other material reasons for his exit.
Subsequently, the RBI approved the bank’s proposal to appoint Keki Mistry as part-time chairman for a period of 3 months as part of a transition arrangement.
The regulator also highlighted that HDFC Bank remains well-capitalised, financially sound, and maintains adequate liquidity. It added that it will continue to engage with the bank’s board and management on the way forward.
Following these developments, HDFC Bank’s shares declined by 4.88% to ₹801.85, while broader market indices were down 2.4%.
Earlier, Keki Mistry reaffirmed the board’s commitment to maintaining institutional strength and stakeholder trust. “The bank operates with strong governance standards, robust internal controls and an extremely experienced management team. Our strategic direction, business priorities and execution capabilities continue to remain as always,” he said during an investor call.
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