Mumbai | HDFC Bank’s internal turmoil has now drawn the direct attention of the regulator. Following the sudden resignation of the bank’s former chairman, Atanu Chakraborty, the Reserve Bank of India (RBI) has sought complete details of the board meetings held on March 17 and 18. The request includes not only the written minutes but also the audio and video recordings of the meetings.
According to an exclusive report by Moneycontrol, the RBI is treating the matter seriously and wants to understand the exact issues discussed and points of disagreement during the board meetings. The regulator is particularly keen to verify whether the concerns raised by Chakraborty to the RBI are accurately reflected in the official meeting records.
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Sources indicate that the RBI has also requested details of the Nomination and Remuneration Committee (NRC) meeting held on March 17. Typically, companies are given 14 days to prepare board meeting minutes. However, in this case, the RBI has asked for the information within just one week, signaling the urgency and importance of the matter.
In his resignation, Chakraborty noted that over the past two years, certain developments within the bank were not aligned with his personal values and ethical standards. Reports suggest that his differences were primarily with the bank’s MD and CEO, Sashidhar Jagdishan, and it was these disagreements that led him to step down.
The RBI’s proactive approach indicates that the regulator is unwilling to overlook any potential governance or compliance lapses. Chakraborty had also hinted to the RBI that some of his concerns were not adequately reflected in the board meeting records. This may explain why the regulator has now requested both documentation and recordings to ensure factual clarity.
On its part, the bank has appointed Keki Mistry as a part-time interim chairman for three months. Additionally, both a domestic and a foreign law firm have been engaged to review the circumstances surrounding Chakraborty’s resignation. The bank stated that these steps are intended to ensure transparency and strengthen corporate governance.
Experts suggest that the dispute has evolved beyond just a resignation. It raises questions about HDFC Bank’s corporate governance and the internal dynamics of its board. RBI’s ongoing review could uncover significant details in the coming days, with potential implications for both the bank and its investors.
The boardroom turmoil has also affected HDFC Bank’s shares. Following news of Chakraborty’s resignation and the boardroom dispute, the bank’s ADR witnessed a decline, while investors await further clarity on the developments.
Overall, RBI’s intervention highlights that the regulator takes any irregularity in banking governance seriously. Monitoring of this case and the findings from the forthcoming review could prove crucial in evaluating HDFC Bank’s internal processes and safeguarding investor interests.
