HDFC Bank has engaged two domestic international law firms to examine the resignation letter submitted by former part-time chairman Atanu Chakraborty.
The bank has instructed the firms to deliver their assessment within a reasonable timeframe.
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Chakraborty stepped down earlier this month, pointing to “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” as the rationale for his exit.
HDFC Bank clarified that Chakraborty “did not mention any happenings and practices which were not in congruence with his personal values and ethics.”
Appointed to the board in May 2021, Chakraborty’s tenure overlapped with major developments, including the merger of HDFC Bank and HDFC Ltd.
Following his departure, the Reserve Bank of India has appointed Keki Mistry, previously with HDFC Group, as interim non-executive chairman for a term of three months.
Since Chakraborty’s resignation became public, HDFC Bank shares have declined by nearly 12%.
Managing Director and CEO Sashidhar Jagdishan told The Economic Times (ET) bureau that the bank will address shortcomings, strengthen controls, and act “ruthlessly” against any misconduct.
Jagdishan said measures will be taken against any identified misconduct and described the situation as “like fighting a ghost,” referring to the uncertainty regarding the specific concerns at play.
Jagdishan stated that while previous remediation efforts have been implemented, the sudden nature of Chakraborty’s departure was unexpected.
During discussions held on 18 March, Chakraborty reportedly maintained his position after parts of his resignation letter were debated, leaving the matter to be managed through established procedures.
