HDFC Bank’s chairperson, Atanu Chakraborty, resigned mid-term citing ethical concerns about certain bank practices not aligned with his personal values, prompting questions about governance.

The bank acknowledged Chakraborty’s contributions and stated there are no other reasons for his resignation beyond those mentioned, noting that Chakraborty does not hold directorships in other companies.

RBI approved the appointment of Keki Mistry as interim part-time chairman from March 19, 2026, for three months to ensure a smooth transition.

Keki Mistry was officially appointed as interim chairman effective March 19, 2026, under RBI-approved arrangements to oversee continuity.

The resignation raised questions about governance risk and internal disagreements, potentially affecting investor confidence until stabilizing steps are outlined.

Regulators and the RBI asserted the bank’s sound finances and governance, stating there are no material concerns on record and maintaining confidence in its stability.

Chakraborty’s exit marks the first mid-term departure of a part-time chairman at HDFC Bank.

During a concall, the board stated they accepted Chakraborty’s resignation and emphasized there are no material governance concerns, aiming to reassure stakeholders.

Market reaction reflected concerns over governance and potential implications for strategic direction and regulatory compliance.

Intraday reaction saw the stock sliding before partial recovery, contributing to a fall in the bank’s market capitalization and a wider market dip.

HDFC Bank stock fell sharply in early trading and was trading in bear territory, with about a 4–5% daily decline and a notable drop from its 52-week high.

Despite leadership turmoil, the bank posted solid Q3 FY26 results, with double-digit profit growth and stable core income, though margins faced pressure.