There is no power struggle, says HDFC Bank's interim chairman Keki Mistry

In a call with investors, HDFC Bank’s new interim part-time chairman Keki Mistry said that he had taken on the responsibility at the age of 71 because it aligned with his principals.

“The board and the management oversaw the largest merger that India saw in recent corporate history. The mergers successful completion have not only boosted the bank’s balance sheet, but also given it a strong presence in key products and services. The merged entity continues to build on its shared values, and realise the full potential of its market synergies,” he added.

A day earlier, Atanu Chakraborty had resigned as part-time chairman and independent director of the bank citing a difference in personal values and ethics with “certain happenings and practices within the bank over the last two years”.

Chakraborty joined the board in 2021 after which the bank merged with its parent housing finance company HDFC. “The benefits of merger are yet to fully fructify,” he has said in his statement.

Chakraborty had served as the economic affairs secretary in the Ministry of Finance until his retirement in April 2020.

The board members of the bank, however, said that they were baffled by the letter as none of the board members were aware of any specific issue. Chakraborty is said to have stated that his value systems were different. But on being asked what needed to be done to set things right, his response was nothing.

Mistry has stepped into the role for a period of three months. The Bank met on 18 March after Chakraborty put in his resignation letter. Some of the directors of the bank went and met RBI officials that same evening, spoke with them, and at the end of that meeting the RBI approved the appointment of Mistry at short notice.

“A transition arrangement has been approved as regards the position of part time Chairman of the bank,” said the Reserve Bank of India in a statement a day later.

“HDFC Bank is a Domestic Systemically Important Bank with sound financials, a professionally-run board and competent management team. Basis our periodical assessment, there are no material concerns on record as regards its conduct or governance. The bank remains well-capitalised and the financial position of the bank remains satisfactory with sufficient liquidity,” it added.