India largest private lender said on Thursday that the abrupt exit of its chairman could be due to a rift between him and the management team, adding there were no material issues at the bank.
Shares of HDFC Bank fell as much as 8.7 per cent on Thursday after its non-executive Chairman Atanu Chakraborty resigned, citing differences over “values and ethics”, which has raised governance concerns.
India’s central bank has approved the appointment of former long-time HDFC Group executive Keki Mistry as an interim non-executive chairman for three months, the bank said. Mistry told reporters and analysts on a call that there had been no discussion with regards to governance within the board.
On the call, he added that he was not aware of the issues raised by Chakraborty in the resignation letter that the bank received on Wednesday and said there were “no power struggles within the bank”.
“There could have been a relationship issue between Chakraborty and management. That may have manifested over a period of time,” Mistry said.
“Chakraborty’s resignation has nothing to do with operational profitability of bank,” he added.
The shares, which at the day’s low saw their steepest drop in more than two years, were the top drag on the benchmark Nifty 50 index, which fell 2.3 per cent.
As of 9:30 a.m. IST (0400 GMT), the bank’s shares had pared some losses to trade 4.3 per cent lower.
Chakraborty, a former bureaucrat, was appointed as HDFC Bank’s chairman in April 2021 for a three-year term and reappointed in 2024 through May 2027.
“Certain happenings and practices within the bank, that I have observed over last two years, are not in congruence with my personal values and ethics,” Chakraborty said in his resignation letter published on India’s stock exchanges, without elaborating. He could not be reached for comment.
“While governance standards have historically been strong for the bank, the current episode raises concerns about aspects that we may have limited insights, but could be material from a stock multiple perspective,” said Kotak Institutional Equities in a note.
Published on March 19, 2026
