HDFC Bank Responds to Chairman's Resignation Amid Speculation

Following the resignation of Atanu Chakraborty, HDFC Bank's interim chairman Keki Mistry has moved quickly to quell rumors of internal strife. Mistry emphasized that the board remains united and that the resignation will not affect the bank's operational performance. The stock market reacted sharply to the news, with HDFC Bank shares dropping significantly. Mistry's reassurances aim to restore investor confidence and clarify the bank's governance status, as the Reserve Bank of India approves his interim leadership role. Read on to learn more about the implications of this leadership change.

By Narendra Chaudhary Mar 19, 2026, 12:07 IST

Management Takes Action Following Resignation

In the wake of Atanu Chakraborty's resignation as part-time chairman and independent director of HDFC Bank, the bank's management has swiftly moved to address rumors of internal conflicts. In his resignation letter, Chakraborty expressed concerns regarding certain practices at the bank that he felt did not align with his ethical standards. Interim chairman Keki Mistry, while speaking to analysts, reassured that there was no power struggle within the organization and emphasized that the board had not experienced any significant disagreements during its meetings.

The unexpected departure of Chakraborty triggered a wave of panic selling in the stock market, leading to an 8.7% drop in HDFC Bank's share price at the opening, which resulted in a loss of over ₹1 lakh crore in investor wealth within hours. Following this incident, the Reserve Bank of India has sanctioned Keki Mistry's appointment as interim part-time chairman for a three-month period starting March 19, 2026.

Mistry stated that the board was unaware of the issues raised by Chakraborty in his resignation letter and confirmed that there had been no discussions regarding governance concerns. He reassured stakeholders that the bank's leadership remains cohesive and that the management team is committed to maintaining operational integrity. Mistry also noted that the RBI is fully informed about the situation and is comfortable with the bank's current operations. He firmly stated that the resignation would not impact the bank's business performance, asserting that the events of the previous day were unrelated to its operational profitability.