HDFC Bank shares rise 2% amid review of part-time chairman’s resignation

The recovery comes after the stock had declined in recent sessions following the bank’s disclosure that it is reviewing the resignation letter of its part-time chairman Atanu Chakraborty.

The bank said it has appointed external law firms to examine Chakraborty’s resignation letter, adding that a report will be submitted within a reasonable timeframe.

In his resignation letter, Chakraborty stated that he was not aligned with certain decisions taken by the bank over the past two years.

“Certain happenings and practices within the bank, that I have observed over the last two years, are not in congruence with my personal values and ethics. This is the basis of my aforementioned decision,” he wrote, as quoted by NDTV.

“I confirm that there are no other material reasons for my resignation other than those stated above,” he added.

Reflecting on his tenure, Chakraborty said it coincided with major developments, including the merger of the bank with HDFC Ltd, which created a financial conglomerate and made HDFC Bank the second-largest bank in India.

However, he noted that the full benefits of the merger are yet to be realised.

Following his exit, the Reserve Bank of India has approved the appointment of Keki Mistry as the interim part-time chairman for a period of three months from March 19.

Mistry had earlier served as vice-chairman of HDFC Ltd prior to its merger with the bank.