HDFC Bank managing director and chief executive officer Sashidhar Jagdishan described the resignation of former part-time chairman Atanu Chakraborty as a ‘challenging event’ for the lender, in its FY26 annual report. He also reiterated that an independent legal review did not substantiate the concerns raised in Chakraborty’s resignation letter.
“Towards the end of financial year 2025-26, the bank faced a challenging event with the resignation of Mr Atanu Chakraborty, Part-time Chairman and Independent Director of the Bank, on March 18, 2026,” Jagdishan said in his message to shareholders.
He said the statement in Chakraborty’s resignation letter had raised questions about the bank’s governance standards, prompting the board, with the Reserve Bank of India’s approval, to appoint Keki Mistry as interim chairman.
Independent Audits
According to the annual report, the board appointed domestic and international law firms to examine the issues raised in the resignation letter and constituted a special committee comprising only independent directors to oversee the review. “Since the ADRs of the bank are listed on NYSE, the board considered it prudent to engage both domestic and international law firms for the purpose of this review,” Jagdishan said.
The review covered the two years preceding Chakraborty’s resignation and involved examining board minutes, meeting materials and communications, besides interviewing all independent directors and several members of senior management, including Jagdishan.
The bank received the findings of the external law firms on June 26. According to the annual report, the review concluded that the statements made by Chakraborty in his resignation letter and their implications “were not substantiated by the record reviewed and witness interviews”.
Jagdishan said the episode underscored the bank’s commitment to strong governance and transparency.
“The Bank remains committed to the highest standards of corporate governance. We continued to enhance our internal frameworks and refresh key control processes as part of the organisation’s journey,” he said.
Interim chairman Keki Mistry also said the bank remained “strongly rooted in strong corporate governance principles and values” and was committed to maintaining the highest standards of transparency, accountability and oversight.
Transitioning Leadership
The annual report said the board appointed Rajiv Kumar as part-time chairman and independent director on June 29, subject to the approval of the RBI and shareholders, marking the next phase of the bank’s leadership transition.
“The Board places on record its sincere appreciation for the wise counsel made by Mr Chakraborty to the Bank during his association with the Bank,” the report said.
Welcoming Kumar, Jagdishan said he had “played a transformational role in revitalising the banking and financial services sector” during his distinguished career in public service and had driven growth-oriented and inclusion-focused initiatives within the financial system.
In his letter to shareholders, Jagdishan also referred to the merger of mortgage lender HDFC with HDFC Bank three years ago, describing it as one of the landmark decisions taken under his leadership.
The annual report disclosed that Chakraborty was paid total remuneration of ₹1.07 crore in FY26, comprising ₹48.25 lakh in fixed remuneration and ₹59 lakh in sitting fees. The bank said the RBI had approved fixed remuneration of ₹50 lakh for the full financial year, but Chakraborty received ₹48.25 lakh on a pro-rata basis after resigning on March 18.