Atanu Chakraborty, part-time chairman of HDFC Bank, India’s largest private bank, has resigned from his post with immediate effect. He submitted his resignation letter to the bank on March 18, 2026, citing conflict between the bank’s working practices and his personal ethics. As soon as this news came out, there was a big fall in the bank’s shares on Thursday, which has created a stir among the investors.
What is the main reason behind resigning?
Atanu Chakraborty has clearly written in his resignation letter that during the last two years, he has observed certain incidents and practices within the bank which are not in line with his personal values. He told that the main basis of his tough decision is the conflict of morals and values. The bank has accepted this resignation and informed the stock market about it. Chakraborty had joined the bank’s board in May 2021 and his tenure was still pending.
What was the impact on the stock market and banks?
As soon as the news of resignation became public, HDFC Bank shares were adversely affected in the stock market and heavy selling was seen in it. The impact of this development can be understood in the points given below:
The bank’s shares fell 5% to 9% in Indian stock markets. The bank’s ADRs in New York fell nearly 7%. Keki Mistry has been made the interim chairman for three months from March 19, 2026. RBI has said that at present there is no major concern regarding the functioning or governance of the bank. Market analysts believe that citing ethics has weakened investor confidence a bit.
The bank has said that approval has been received from the Reserve Bank for the appointment of Keki Mistry. Mistry has clarified that there was no dispute over governance within the board and he had no prior knowledge of the issues raised by Chakraborty.