Mumbai: As the Reserve Bank of India (RBI) approved the appointment of veteran banker Keki Mistry as the interim part-time Chairman of HDFC Bank for a period of three months, effective March 19, the bank held a conference call with analysts. During the interaction, Mistry said he accepted the role as it aligned with his personal values and principles.
“At 71, I would not have taken up this responsibility if it did not align with my values and principles,” he said.
He added that the developments leading to his appointment took place rapidly after the resignation of Atanu Chakraborty, with some board members meeting the Reserve Bank of India soon after.
“The developments happened at very short notice. After the Board meeting and the resignation, some directors met the RBI,” Mistry said.
According to him, the central bank’s swift approval reflects its comfort with the situation at the bank.
“The fact that the RBI approved my appointment within a short span indicates that it is comfortable with the situation at the bank,” he added.
Meanwhile, the Reserve Bank of India on Thursday said there are “no material concerns” regarding HDFC Bank’s conduct or governance following the resignation of part-time Chairman Atanu Chakraborty over ethical differences.
The central bank noted that the lender “remains well-capitalised” and its financial position continues to be satisfactory.
“The Reserve Bank has taken note of the recent developments in HDFC Bank. A transition arrangement as requested by the bank has been approved by the Reserve Bank with regard to the position of part-time Chairman,” the RBI said in a statement.
It added that HDFC Bank, being a Domestic Systemically Important Bank (D-SIB), has sound financials, a professionally run Board and a competent management team.
In its filing, HDFC Bank said there were no reasons for Chakraborty’s resignation other than those stated in his letter. It also noted that he does not hold directorship in any other company.
The Board expressed appreciation for Chakraborty’s contribution during his tenure and wished him success in his future endeavours.
Chakraborty had joined the Board in May 2021 and stepped down, citing that certain developments and practices within the bank over the past two years were not in alignment with his personal values and ethics.
Shares of HDFC Bank declined as much as 8.41 per cent, hitting an intraday low of Rs 772 on the BSE. As of 11:28 am, the banking stock was trading at Rs 804, down 4.57 per cent on the exchange.
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