Mumbai, March 19: HDFC Bank CEO Sashidhar Jagdishan on Thursday said former Chairman Atanu Chakraborty was asked by the board to reconsider his resignation and explain the ethics-related concerns he raised, but he chose not to do so. Speaking to reporters after the development, Jagdishan said that every board member had tried to persuade Chakraborty to either withdraw his resignation or provide more details about the issues mentioned in his letter.
“The board also requested him to reconsider some of the language used in the resignation note, but these efforts were not successful,” he added. Chakraborty stepped down earlier this week, citing concerns over certain practices within the bank that, according to him, did not align with his personal values and ethics.
However, the management and board members said they were unable to understand the exact nature of these concerns, as no specific instances were shared. Jagdishan said the matter was discussed at a meeting of the nomination and remuneration committee, following which some board members reached out to the Reserve Bank of India to brief the regulator about the situation.
“The regulator responded promptly by appointing Keki Mistry as the interim Chairman for a period of three months,” he noted. Despite the sudden resignation, the bank’s leadership maintained that there are no major issues within the organisation. They expressed confidence that the bank’s reputation will recover over time and that its governance standards remain strong.
Other board members also supported this view. Independent director M.D. Ranganath said Chakraborty was repeatedly asked to point out specific concerns, but he did not provide any details. Director Renu Sud Karnad also said the board was surprised by the development, as the claims made in the resignation letter were not clearly explained. Interim Chairman Mistry, while addressing speculation around the exit, hinted at a possible personal issue but did not elaborate further. The bank has sought to reassure stakeholders that its operations and governance remain stable despite the leadership change.
IANS
