Atanu Chakraborty resigned as the part-time chairman and independent director of HDFC Bank with immediate effect on 18 March 2026. His resignation letter cited that certain practices within the bank over the past two years were not in alignment with his personal values and ethics. Keki Mistry was appointed as interim part-time chairman for a period of three months, effective 19 March 2026. The Reserve Bank of India approved the transition plan, and HDFC Bank confirmed there were no other material reasons for Chakraborty’s resignation.
According to The Hindu, the Reserve Bank of India stated that HDFC Bank remains well-capitalised and financially sound, with no material concerns regarding its governance or conduct. The RBI approved the bank’s requested transition arrangement and will continue to engage with the board and management on the way forward.
As reported by The Indian Express, interim chairman Keki Mistry clarified that there was no power struggle or governance issue within the bank. Mistry emphasised that the board had not witnessed any significant differences of opinion and that Chakraborty’s resignation was a personal decision, not prompted by operational or governance concerns.
Market reaction was immediate, with HDFC Bank’s shares falling sharply both in domestic and international markets following the announcement. The bank’s American Depositary Receipts dropped by 8%, and its market capitalisation declined by over Rs 61,000 crore during the week. Chakraborty reiterated that his resignation was not linked to any wrongdoing at the bank, stating, “My ideologies did not match with the organisation, and hence it was time to part ways.”
Further details revealed that Chakraborty’s resignation letter was dated 17 March 2026 and received by the bank on 18 March 2026. He joined the board in May 2021 and oversaw significant events, including the merger of HDFC Ltd. with HDFC Bank, which became effective on 1 July 2023. His term had been extended until May 2027 prior to his resignation.
“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,” Chakraborty stated in his resignation letter.
Stock market analysts noted that the chairman’s exit added to existing macroeconomic headwinds for HDFC Bank. The bank’s stock fell by 4.45% on the BSE on 19 March 2026, and analysts suggested that the resignation could prolong the recovery of the bank’s valuation multiples.
Coverage indicated that Chakraborty’s resignation was due to differences in values and ethics, with his term originally set to end in May 2027. The merger of HDFC Ltd. and HDFC Bank was highlighted as a significant event during his tenure, though Chakraborty noted that the benefits of the merger were yet to fully materialise.
As statements confirmed, Chakraborty is a retired IAS officer who previously served as Secretary in the Ministry of Finance. The board expressed appreciation for his contributions and wished him success in future endeavours.
At the end of the announcement, reporting indicated that Chakraborty praised the energy of the bank’s junior and middle management, while also referencing friction at the top level following the merger. The strategic benefits of the merger, he noted, were “yet to fully fructify.”
Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.