By Admin 
HDFC Bank Chairman Resigned: Atanu Chakraborty immediately resigned from the post of non-executive chairman of HDFC Bank on Wednesday, March 18. He has cited ‘Personal Values and Ethics’ behind his decision. By saying this, new questions may arise regarding the governance system in the bank, which is very important for the entire banking system.
In a regulatory filing, the bank said that retired civil servant Atanu Chakraborty has resigned from the post of part-time chairman and independent director. Atanu, former economic affairs secretary, joined the bank’s board in May 2021 and served as chairman when HDFC was merged with the bank. HDFC said that RBI has approved the appointment of Keki Mistry as interim part-time chairman for 3 months. This appointment will be effective from Thursday.
Chairman re-elected with the approval of RBI
Atanu Chakraborty said in his resignation letter that in the last two years, he has seen some incidents and ways of working within the bank, which are not in accordance with his principles. He also clarified that there is no other major reason for his resignation. His departure is surprising, as he was re-appointed for a tenure till May 2027 with the approval of RBI.
For the first time, he became the chairman of the bank for three years in May 2021. The board again recommended his name in December 2023. The Reserve Bank had approved his second term on May 2, 2024. His new tenure was fixed from May 5, 2024 to May 4, 2027.
Impact will be visible on shares
HDFC Bank has about 15 percent of the total deposits of the country. In such a situation, sudden resignation of the Chairman is a big deal, which can have a visible impact on the shares. With the opening of the market on March 19, there is heavy selling pressure on bank shares.
On Tuesday, shares of HDFC Bank closed at Rs 842 with a decline of 0.40 percent compared to the previous day. A fall of up to Rs 831.60 was seen in the shares during trading. The share closed at Rs 842.95 on BSE. At the same time, shares were traded in a huge volume of about Rs 2.35 crore on NSE.
A huge fall of more than 7 percent was seen in the ADR of HDFC Bank listed in the American stock market last night. The investors here immediately responded to the news of the chairman’s resignation.
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