The sudden resignation and departure of Atanu Chakraborty, non-executive chairman and unbiased director of HDFC Financial institution, India’s largest non-public sector monetary establishment, triggered a big drop within the worth of the financial institution’s shares, which fell to a 52-week low on Thursday (19 March 2026), closing 5.13 per cent decrease at Rs 799.70 on the BSE.
Buyers within the financial institution misplaced an estimated market capitalization of Rs 1.03 billion in a single day, even because the financial institution’s board of administrators and the Reserve Financial institution of India (RBI) reassured traders and the market concerning the financial institution’s sound monetary well being and excessive company governance.
In his resignation letter dated March 17, which was made public late on March 18, Chakraborty, a 1985-batch Gujarat cadre IAS officer and former Secretary, Ministry of Financial Affairs, stated, “Sure incidents and practices throughout the financial institution that I’ve noticed over the previous two years aren’t according to my private values and ethics. That is the premise for my aforesaid resolution (to resign).”
“I affirm that there aren’t any different vital causes for my resignation aside from these listed above,” his letter stated.
The RBI on Wednesday (March 18, 2026) night time appointed HDFC veteran Keki Mistry because the interim non-executive chairman of the financial institution for a interval of three months.
In a digital press convention on Thursday (March 19, 2026), Mr. Mistry stated, “I actually can’t perceive that it led to such a response (resignation). I want to guarantee all shareholders that there aren’t any materials points at the moment (which led to the resignation). Board members requested Mr. Chakraborty concerning the purpose for his resignation, and Mr. Chakraborty responded that he had no explicit considerations.”
“No particular points have been dropped at our consideration, and no particular operational or different points have been highlighted,” Mistry stated, including, “The board stays dedicated to defending institutional worth and investor confidence.”
He stated the financial institution’s board operates with sturdy governance requirements and strong inner controls, and it has a extremely skilled administration workforce. He stated the 71-year-old wouldn’t have taken on this accountability if the financial institution’s governance requirements weren’t according to his values.
“We will make an arrest. The administration and board are united. Any apprehensions within the minds of traders shall be addressed. The central financial institution has additionally expressed its satisfaction with the financial institution,” Mistry stated in response to a query concerning the reputational injury the financial institution might have suffered because of his sudden resignation.
In response to a different query about friction with administration, Mistry stated: “It is extra of a private relationship challenge. Let’s not get into that.”
hinduism He has contacted Chakraborty, who took over the publish in 2021 forward of the merger of HFDC Ltd and HDFC Financial institution, to search out out the explanations behind the drastic step and ensure the board’s model, however his response continues to be awaited.
He reportedly advised the tv station that his resignation was because of ideological variations quite than organizational corruption.
After Mr. Chakraborty’s resignation, nice drama ensued as the complete board tried to search out solutions to his resignation, which he stored silent about. This left some board members “perplexed.”
He was additionally persuaded to withdraw his resignation, element his considerations, and alter some phrases and expressions he was not required to make use of.
Whereas the board assembly proceeded, 4 administrators rushed to the RBI at 7 pm to clarify the event and intimate the regulator. Consequently, the interim chairman was promptly authorized.
On Thursday (March 19, 2026), RBI issued a press release reiterating its confidence in banks as financial institution shares fell on the inventory exchanges, elevating considerations concerning the functioning of banks.
“HDFC Financial institution is a home systemically necessary financial institution (D-SIB) with sound financials, a professionally managed board of administrators and a reliable administration workforce. Primarily based on our periodic assessments, there aren’t any materials considerations on document relating to its conduct or governance. The financial institution stays properly capitalized and the financial institution’s monetary place continues to be passable with enough liquidity,” RBI stated.
The regulator stated it can proceed to interact with the board and administration.
Dispelling considerations from numerous quarters, Sasidar Jagdishan, CEO and MD of HDFC Financial institution, stated, “The rigor of the financial institution’s supervision, board of administrators, administration workforce, we imagine that nothing shocking will occur. We have now cheap confidence within the rigor and philosophy and are assured that the controls are working.”
“Anybody can say something, however proper now we’re fairly optimistic about the place we’re and what we have been saying all alongside.”
issued – March 19, 2026 9:58 AM IST
