‘Quit as HDFC Bank part-time chairman over values, ethics’: Atanu Chakraborty

In an interview with CNBC-TV18, Chakraborty indicated that his resignation stemmed from differences over principles, though he refrained from citing any specific incident behind his exit.

“Even a month later would have had as much speculation… because of a bit of lack of understanding in the larger domain about the words ‘values’ and ‘ethics’,” he said.

Elaborating on the role of independent directors, Chakraborty noted that they carry “onerous responsibilities” in upholding ethical standards, probity, integrity, and fiduciary duties towards depositors.

“For me, the customer is God… there has to be a long-term relationship of loyalty with the customer, not a transactional one,” he added.

Chakraborty’s sudden resignation was triggered by a power struggle with the bank’s CEO, Sashidhar Jagdishan, the Financial Times reported earlier.

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.

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.

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.