HDFC chairman Atanu Chakraborty resigned over power struggle with CEO Sashidhar Jagdishan: Report

Sources familiar with the matter said tensions between the two had been brewing for months over strategic disagreements, governance issues, and Jagdishan’s impending reappointment.

The discord reportedly included differences over a potential sale of a minority stake to Japan’s Mitsubishi UFJ Financial Group in 2024, which Jagdishan supported but Chakraborty opposed.

“There was discord in the management for quite some time,” a shareholder told the news outlet.

The disagreement reached a peak over Jagdishan’s reappointment, which is pending regulatory approval. Multiple sources said Chakraborty opposed the renewal, while the majority of HDFC’s board supported it.

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

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.