‘Transition agreement approved’: RBI on HDFC Bank’s part time chair Atanu Chakraborty’s resignation

The Reserve Bank of India (RBI) has stated that it took note of the recent development at HDFC Bank. The lender’s part-time chairman, Atanu Chakraborty, sent in his resignation citing “values and ethics” concerns. 

“A  transition arrangement as requested by the Bank has been approved by Reserve Bank 
as regards the position of Part Time Chairman of the Bank,” said RBI, adding that HDFC Bank has “sound financials, professionally run board and competent management team”. 

“Basis our periodical assessment, there are no material concerns on record as regards its conduct or governance. The bank remains well-capitalised and the financial position of the bank remains satisfactory with sufficient liquidity. The Reserve Bank will continue to engage with the Board and management on the way forward,” said RBI.

THE CHAIR’S LETTER

Atanu Chakraborty, in his letter of resignation, said, “Certain happenings and practices within the bank, that I have observed in the last two years, are not in congruence with my personal values and ethics.” “I confirm that there are no other material reasons for my resignation other than those stated above,” he wrote. 

“It has been a privilege to contribute to the growth and governance of the Bank. I observed a great amount of energy and verve in the middle & junior levels of the organization, that should form the core of a reimaged organization. I also place on record my sincere appreciation for Secretarial, Compliance, Audit and Group oversight functions,” his letter read further.

Chakraborty’s resignation letter was dated March 17, and was received by HDFC Bank on March 18. RBI approved the appointment of Keki Mistry as the part-time chairman of HDFC Bank for a period of three months.