Ex-HDFC chair cites values and ethics concerns as drivers behind exit

Nearly 2 weeks aft stepping down, Atanu Chakraborty, erstwhile president of HDFC Bank, cited concerns implicit “values” and “ethics” arsenic the crushed down his unexpected resignation, choosing not to elaborate connected circumstantial incidents.

Recently, HDFC Bank engaged 2 home planetary instrumentality firms to analyse the resignation missive submitted by erstwhile part-time president Atanu Chakraborty.

In an interrogation with CNBC-TV18, Chakraborty discussed subjects specified arsenic the AT-1 enslaved issue, interior governance, and the market’s effect to his departure.

Chakraborty singled retired the AT-1 enslaved occurrence arsenic a notable concern.

HDFC Bank has dismissed 3 elder executives this period aft an interior probe into allegations of mis-selling Credit Suisse’s AT-1 bonds to non-resident Indian clients via its Dubai and Bahrain branches. The determination was disclosed successful an speech filing dated March 23.

This enactment follows restrictions placed connected the bank’s Dubai subdivision by the Dubai Financial Services Authority, which has barred the subdivision from onboarding caller clients oregon launching caller fiscal services from 26 September 2025, reported Reuters.

He referred to behaviour and lawsuit onboarding problems astatine the Dubai subdivision dating backmost to 2018 and questioned the bank’s statement of it arsenic a “technical lapse”.

Drawing attraction to the delayed reaction, helium commented: “Something goes connected for 8 years and abruptly we instrumentality an action… I consciousness these behaviour issues should not originate successful the archetypal place.”

He described this attack arsenic reactive alternatively than preventive.

He clarified that helium was not making idiosyncratic accusations, stating that immoderate differences were owed to ethical standards: “I ne'er said anyone was close oregon wrong… radical request to work the dictionary.”

When asked astir reports suggesting absorption to Sashidhar Jagdishan’s reappointment arsenic CEO, Chakraborty responded that specified discussions had not taken place: “Something which was not adjacent discussed - however could differences beryllium there?”

On speculation regarding the HDB–MUFG deal, Chakraborty explained that the chairperson does not marque autarkic decisions:

“No insubstantial comes to the chairperson… helium oregon she does not instrumentality immoderate autarkic decisions.”

He added that immoderate enactment oregon objection would lone beryllium applicable if formally presented successful committee meetings.

Chakraborty acknowledged having informal conversations with the Reserve Bank of India but did not supply details.

He described the slope arsenic “well capitalised and sound” portion noting that “sound institutions indispensable go adjacent much sound.”

He linked matters similar debased CASA ratios, precocious cost-to-income ratios, and stock underperformance to his role’s responsibilities, rejecting claims that these developments were solely attributable to the merger.