New Delhi | A corporate governance debate at HDFC Bank has resurfaced after former part-time Chairman Atanu Chakraborty questioned the necessity of the external legal review ordered following his resignation. Describing the exercise as “superfluous,” Chakraborty said the bank never clarified the scope of the investigation or the legal basis on which it was initiated. The remarks came shortly after the bank disclosed that an independent legal review had found no evidence to substantiate the concerns raised in his resignation letter.
Chakraborty, who stepped down from the bank’s board in March 2026, said he had repeatedly sought the terms of reference governing the review before deciding whether to participate. According to him, despite several requests, the bank did not provide any details outlining the mandate or legal framework of the exercise. In the absence of that information, he chose not to engage with the review. He also maintained that he did not require validation from an external agency for the position he had taken.
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His comments followed HDFC Bank’s disclosure to stock exchanges that an independent review conducted by two external law firms did not find evidence supporting the issues highlighted in his resignation. According to the bank, the review examined board records, committee papers, contemporaneous documents and included interactions with independent directors, senior management and key control function heads to assess the circumstances surrounding the resignation.
The review concluded that the available evidence did not substantiate the concerns raised by the former chairman. HDFC Bank reiterated that it remains committed to maintaining the highest standards of corporate governance, transparency and accountability, adding that the independent review process has now been completed.
Chakraborty’s resignation became one of the most closely watched governance developments in India’s banking sector this year. In his resignation letter dated March 17, 2026, he stated that developments and practices within the bank over the previous two years were inconsistent with his personal values and ethical standards. Although he did not cite any specific incidents or individuals, the statement triggered widespread investor attention and raised questions about governance within the country’s largest private-sector lender.
In response, HDFC Bank’s board commissioned an independent legal review to ensure an objective assessment of the circumstances surrounding the resignation. The bank appointed Indian law firm Wadia Ghandy & Co and US-based Wilson Sonsini Goodrich & Rosati to conduct the review. According to the lender, the exercise was aimed at reinforcing governance standards and providing the board with an impartial evaluation.
Following the completion of the review, the bank informed stock exchanges that the findings of the external law firms were inconsistent with the assertions made in Chakraborty’s resignation letter and did not identify any factual basis to support those claims. The lender reaffirmed its commitment to regulatory compliance and robust corporate governance practices.
Corporate governance experts say that transparency is critical when leadership changes occur at listed companies, particularly in the banking sector where investor confidence is closely tied to governance standards. Independent reviews can help reassure stakeholders, but effective communication between all parties remains equally important to avoid uncertainty and speculation. While HDFC Bank considers the review process concluded, Chakraborty continues to stand by his position, keeping the governance debate alive within India’s financial sector.
