No major issues at HDFC Bank, says Keki Mistry after chairman's sudden exit

Speaking on an investor call, Keki Mistry said there are no major issues at the bank and indicated that the development was not linked to any operational or governance concerns.

In Short

• HDFC Bank interim chairman Keki Mistry reassures investors after Atanu Chakraborty's sudden resignation
• Mistry states no major issues or governance concerns linked to the resignation.
• Bank shares dip on fears over values and ethics raised by Chakraborty.

HDFC Bank’s interim chairman Keki Mistry on Thursday sought to reassure investors after the sudden resignation of part-time chairman Atanu Chakraborty triggered concerns around the bank’s internal functioning.

Speaking on an investor call, Mistry said there are “no major issues” at the bank and indicated that the development was not linked to any operational or governance concerns.

The comments come at a time when HDFC Bank shares came under pressure in early trade, as investors reacted to Chakraborty’s exit over “values and ethics”.

‘NO MATERIAL CONCERNS AT THE BANK’

Mistry highlighted that there are no material issues within the bank and that the resignation does not reflect any deeper problems.

“There are no material matters for the resignation,” he said, adding that no specific concerns had been flagged to the board.

He also underlined that the bank continues to operate with strong internal processes and governance standards and that there were no discussions at the board level around any major issues.

‘NO POWER STRUGGLE’

Addressing speculation around internal differences, Mistry said there was no power struggle within the bank.

“Differences on minor issues come up from time to time,” he said, suggesting that any disagreements were routine and not indicative of larger concerns.

He added that the board has not received detailed explanations from Chakraborty regarding the concerns flagged in his resignation letter.

HDFC Bank CEO Sashidhar Jagdishan also sought to reassure stakeholders, saying the bank will “continue to ensure trust on the bank is maintained”.

He added that the organisation will review its structure going forward, while maintaining stability in operations during the transition.

RBI APPROVAL SIGNALS CONTINUITY

Mistry also pointed to the Reserve Bank of India’s swift approval of his appointment as interim chairman as a sign of regulatory comfort.

“The fact that RBI approved the appointment quickly reflects confidence in what is happening at the bank,” he said.

He has been appointed as interim part-time chairman for a period of three months, during which the bank is expected to identify a long-term successor.

‘NOT LINKED TO PERFORMANCE’

Mistry made it clear that the resignation has no connection to the bank’s financial performance or operations.

“What happened has nothing whatsoever to do with operational profitability,” he said, stressing that the institution remains stable.

He also noted that he would not have taken up the role if it did not align with his own values and principles.

The bank’s management is now focused on ensuring continuity and maintaining investor confidence following the unexpected exit.

Mistry’s remarks are aimed at calming market sentiment, even as questions remain around the issues flagged in Chakraborty’s resignation letter.

For now, the bank has sought to project stability, with the interim leadership stepping in quickly to manage the transition.

- Ends