Over the past day, HDFC Bank has experienced not only a leadership change but also a significant decline in its stock value. On Wednesday, Atanu Chakraborty, who served as the bank's part-time chairman for the past five years, stepped down, citing 'ethical' issues. In his resignation letter, Chakraborty mentioned that some events and practices at the bank over the last two years did not align with his personal values and ethics.
HDFC shares reduced their losses after initially dropping by up to 8.7% on Thursday morning on India's stock exchanges, following a decrease in its American Depositary Receipts during US trading hours, according to Bloomberg.
Chakraborty's resignation marks an unprecedented event in HDFC Bank's history, as no previous chairman had ever stepped down before completing their term. This unexpected move caused alarm among both customers and investors, leading to questions about the bank's operations. In response, the government swiftly intervened to reassure the public, releasing a statement. The Reserve Bank of India clarified that there were no significant issues related to the bank's management or governance.
The RBI has also given the green light for Keki Mistry to take on the role of interim part-time chairman starting March 19, 2026, for a duration of three months.
Who is Keki Mistry? The newly appointed chairman of HDFC Bank.
Prior to his appointment as the chairman of HDFC Bank, 71-year-old Keki Mistry held the position of Vice Chairman and CEO at the Housing Development and Finance Corporation before it merged with HDFC Bank. Following the merger, he assumed the role of Non-executive (Non-independent) director at the bank.
According to his profile on HDFC Bank's official website, Mistry, a chartered accountant certified by the Institute of Chartered Accountants of India (ICAI), has accumulated more than forty years of varied experience in the banking and financial services industry.
He became part of HDFC in 1981 and held numerous significant roles, such as executive director on the board in 1993. In 2000, he was named managing director, and by October 2007, he advanced to vice chairman & managing director. Starting January 1, 2010, he assumed the position of vice-chairman & chief executive officer, managing the corporation's entire operations.
Furthermore, he is a board member of various companies such as Tata Consultancy Services, Torrent Power Ltd, Griha Investments, Griha Limited, and Flipkart Private Limited, among others.Mistry is involved in several committees, such as the Primary Market Advisory Committee (PMAC) established by the Securities and Exchange Board of India (SEBI), and he leads the CII National Council on Corporate Governance. Additionally, he was a member of the Corporate Governance Committee formed by SEBI.
