In a sudden move, HDFC Bank's part-time chairman and independent director Atanu Chakraborty resigned with immediate effect on Wednesday. 

In a letter to the Chairman of Governance, Nomination, Remuneration Committee of the bank, Chakraborty said, "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." The letter added, "I confirm that there are no other material reasons for my resignation other than those stated above." 

Chakraborty, who joined the board of HDFC Bank in May 2021, further wrote, "My tenure on the board saw momentous events like the merger of the bank with HDFC Ltd that created a conglomerate under the Bank. This strategic initiative made HDFC Bank the second largest Bank in the country. Though, the benefits of merger are yet to fully fructify."

Atanu Chakraborty said, "HDFC Bank is an organisation I nurtured for 5 years. I am not pointing out any wrongdoings at the bank. My ideologies did not match with the organisation, and hence it was time to part ways."

According to reports, all was not well on the board about the functioning of the bank for some time. However, Chakraborty has thanked the board in his letter. He said, "I would like to express my sincere appreciation to the Board and senior management for their cooperation and support during my tenure. I express my gratitude to all the Independent Directors and Non-Executive Directors, who spared their valuable time and shouldered onerous responsibilities on the Board and its Committees."

Following his resignation, the HDFC Bank, in an exchange filing, said, "We confirm that there are no reasons other than those mentioned in the said letter, for the resignation of Chakraborty." It added, "Further, Chakraborty does not hold directorship in any other company. The Board of Directors places on record its appreciation for Chakraborty's contribution to the bank during his tenure and wishes him all the success in his future endeavours." 

Notably, the Reserve Bank of India okayed the appointment of Keki Mistry, who served as the vice-chairman of HDFC Ltd before its merger with HDFC Bank, as the interim part-time chairman of HDFC Bank with effect from March 19 for three months. In a brief statement, the central bank said: "The Reserve Bank has taken note of the recent developments in HDFC Bank. A transition arrangement as requested by the Bank has been approved by Reserve Bank as regards the position of Part Time Chairman of the Bank."

It further said: "HDFC Bank is a Domestic Systemically Important Bank (D-SIB) with sound financials, professionally run board and competent management team. Basis our periodical assessment, there are no material concerns on record as regards its conduct or governance."