HDFC Bank Managing Director and CEO Sashidhar Jagdishan has termed the resignation of former part-time chairman Atanu Chakraborty a "challenging event" that raised questions about the lender's governance standards. In the bank's annual report for 2025-26, Jagdishan reaffirmed HDFC Bank's unwavering commitment to the highest standards of corporate governance.
Chakraborty had resigned from his position on March 18, citing that "certain happenings and practices" within the bank, observed over two years, were "not in congruence" with his personal values and ethics. This statement prompted significant scrutiny regarding the bank's internal operations and oversight.
In response to the concerns, the HDFC Bank board swiftly appointed external law firms to review the claims made in Chakraborty's resignation letter. Given the bank's ADR listing on the NYSE, both domestic and international law firms were engaged to ensure a comprehensive and impartial review. A special committee, comprising independent directors, was also constituted to oversee the legal process and facilitate transparent information flow.
The extensive review involved scrutinizing voluminous minutes, materials, communications, and conducting interviews with all independent directors and numerous senior management members, including Jagdishan himself. This thorough process, covering a two-year period prior to the resignation, ultimately concluded that the statements and implications within Chakraborty’s resignation letter were not substantiated by the records or witness interviews.
Jagdishan further highlighted the bank's continuous efforts to enhance its internal frameworks and refresh key control processes as part of its ongoing journey. Following Chakraborty's departure, the board appointed former IAS officer and ex-Chief Election Commissioner Rajiv Kumar as the new part-time chairman and independent director, acknowledging his distinguished career and transformative role in India's financial sector.
Beyond governance, Jagdishan's letter to shareholders also touched upon the successful three-year integration of the HDFC merger, which has solidified the bank's position as a top-two player in the mortgage business. He emphasized the increasing role of technology, particularly the in-house foundational GenAI platform 'Neev,' in embedding intelligence into the bank's systems, workflows, and decision-making, alongside strengthening cybersecurity measures against evolving digital threats. Jagdishan expressed an "incorrigible optimist" view on the long-term prospects of the Indian economy, affirming the bank's focus on risk management and leveraging technology for an enhanced customer experience.