India’s largest private lender, HDFC Bank, has hires external legal firms to review the resignation letter of its former chairman Atanu Chakraborty, amid rising concerns over corporate governance.

Key Highlights

• HDFC Bank hires external law firms to review Atanu Chakraborty resignation amid governance concerns.
• Sudden chairman exit triggers investor worries with board initiating independent legal review for transparency.

The move comes after Chakraborty’s sudden exit last week, where he cited differences related to “values and ethics.” However, the bank clarified in its regulatory filing that the resignation letter did not specify any particular practices or incidents that conflicted with his ethical standards.

To ensure transparency and reinforce governance standards, the bank’s board approved the appointment of both domestic and international law firms. These firms have been tasked with conducting an independent review and submitting a report within a reasonable timeframe.

The abrupt resignation triggered a sharp market reaction, with HDFC Bank’s shares falling nearly 10–12% over a few sessions, reflecting investor concerns around internal governance and leadership stability.

Also Read: HDFC Bank Chairman Atanu Resigns; Keki Mistry Named Interim Chief

Despite the controversy, the bank has maintained that there are no material governance lapses, and regulators, including the Reserve Bank of India, have reassured that the institution remains financially strong and systemically important.

In the interim, veteran banker Keki Mistry has been appointed as non-executive chairman of HDFC Bank for a short term, as the bank works to restore investor confidence and address the situation.