Daijiworld Media Network - Mumbai

Mumbai, Mar 24: HDFC Bank has said its Board has approved the appointment of external law firms, both domestic and international, to review the resignation letter of former part-time Chairman and Independent Director Atanu Chakraborty, in a move aimed at strengthening governance standards.

The decision was taken at a Board meeting held on March 23, with the appointed firms tasked with examining the contents of Chakraborty’s resignation and submitting a report within a reasonable timeframe, the bank said in a regulatory filing.

Describing the step as proactive, the lender said it reflects its commitment to transparency and robust corporate governance practices.

Chakraborty had resigned on March 18 with immediate effect, citing that certain developments within the bank over the past two years were not aligned with his personal values and ethics. However, the bank clarified that he did not point to any specific incidents or practices in his letter.

He has also publicly stated that his exit was not linked to any wrongdoing or malpractice within the bank, but stemmed from differences in ideology and approach. Chakraborty had joined the bank’s board in 2021.

Following his resignation, the Reserve Bank of India approved the appointment of Keki Mistry as interim part-time Chairman for a three-month period starting March 19. Mistry has indicated that there are no major concerns facing the bank after the development.

The bank reiterated that the external review is intended to enhance governance oversight and provide clarity around the circumstances of the resignation.

Separately, the bank has reportedly terminated three employees, including senior executives, following an internal probe into alleged mis-selling of high-risk AT1 bonds to NRI clients through its overseas operations.

Shares of HDFC Bank were trading over 3 per cent higher at Rs 767.75 on Tuesday morning, after declining 11.73 per cent between March 18 and March 23.