Atanu Chakraborty’s sudden exit as chairman of HDFC Bank appears to have been the result of a long-running internal clash with the bank’s CEO Sashidhar Jagdishan, reported The Financial Times citing people familiar with the developments.
Chakraborty, who had been serving as the non-executive chairman since 2021, stepped down last week without any prior warning. In his resignation note, he pointed to serious differences on ethical grounds between him and the bank’s leadership, raising eyebrows across the financial sector.
In his letter to the chairman of the Governance, Nomination and Remuneration Committee at HDFC Bank, Chakraborty said that over the past two years he had noticed certain developments and internal practices that did not align with his personal values and ethical standards, which ultimately led him to step down.
CEO Jagdishan’s Reappointment – Trigger for Atanu’s departure?
Atanu’s abrupt departure triggered concern among investors and industry watchers about the bank’s stability. However, those familiar with the situation told FT that the issue went deeper than compliance-related disagreements.
The situation, as per FT, intensified around the question of bank’s CEO Jagdishan’s reappointment. His current term is nearing its end and requires regulatory clearance for renewal. The report suggests that Chakraborty was not in favour of extending Jagdishan’s tenure, while a majority of the board supported the CEO’s continuation.
The FT report citing a senior banking executive in Mumbai said that the chairman had taken a clear stand against renewing Jagdishan’s term. Another person close to the matter said that the disagreement over this issue appears to have been the main trigger behind the fallout.
Past disagreements
The report further added that differences between the two leaders were not new and had been building for some time. One major flashpoint was the future of HDB Financial Services, a key arm of the bank.
Jagdishan had supported the idea of selling a minority stake in the subsidiary to Mitsubishi UFJ Financial Group in 2024. Chakraborty, however, was against the move. The disagreement over this proposal added to the strain between the two, and the deal eventually did not go through. Instead, the business was taken public last year.
A shareholder told FT there had been visible differences within the bank’s top management for quite some time, suggesting that the chairman’s exit was the result of tensions that had been simmering beneath the surface.
Mistry denied internal tussle
A day after Chakraborty stepped down, Keki Mistry who was the Vice-Chairman of HDFC Ltd before its merger with HDFC Bank, told analysts that there was no internal tussle at HDFC Bank and that the board had not held any discussions raising governance concerns.
He said the directors were on the same page and had not seen any major differences of opinion during meetings. On the question of seeking clarity from Chakraborty, he indicated that the board would meet soon to decide the next steps.
Around the same time, the Reserve Bank of India said it had not found any significant issues related to the bank’s conduct or governance. The regulator added that it would stay in touch with the bank’s board and management in the coming days.
On-going investigation
Reuters could not immediately verify the report but they said they are investigating the issue. HDFC Bank on Tuesday announced that its board had brought in both Indian and international law firms to examine the contents of Chakraborty’s resignation letter.
“To reinforce the robust governance standards of the bank, the board of directors at its meeting held on March 23, 2026, approved the appointment of external law firms (domestic and international) to conduct a review regarding Mr Chakraborty’s resignation letter,” the bank said in its filing.
The Securities and Exchange Board of India has already initiated a review into the resignation of Atanu Chakraborty, to check if there were any breaches of rules that apply to directors of listed companies.
Financial Express News Desk reached out the the HDFC Bank for a comment on the report. Their response is still awaited.