RBI finds ‘no material concerns’ in governance as HDFC Bank chief quits

A day after Atanu Chakraborty, part-time chairman of HDFC Bank, resigned from his position citing ethical concerns, the Reserve Bank of India (RBI) said it found no material concerns regarding the bank’s conduct or governance.

The Central Bank stated that it had taken note of the recent developments in HDFC Bank and approved a transition arrangement for the position of part-time chairman. “The bank remains well-capitalised and the financial position of the bank remains satisfactory with sufficient liquidity,” the RBI said in a statement, reported agencies.

“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,” he said in his resignation letter dated March 17. In a letter addressed to Chairman of Governance, Nomination, Remuneration Committee H K Bhanwala, Chakraborty said, “There are no other material reasons for my resignation other than those stated above.”

The RBI approved Keki Mistry’s appointment as an interim part-time chairman on Wednesday, commencing on March 19, 2026, and for the period of three months, according to the HDFC Bank’s regulatory filing. It further stated that the RBI would keep engaging with the board and management on future course of action.

Meanwhile, a top Finance Ministry official on Thursday said the bank was a “strong institution with strong fundamentals”. Financial Services Secretary M Nagaraju said the RBI had already issued a statement in this regard.