New Delhi, March 19 (IANS). The Reserve Bank of India (RBI) on Thursday said HDFC Bank is a domestic systemically important (D-SIB) bank with strong financial position and is run by a professional board and strong management.
This statement from the central bank has come at a time when Atanu Chakraborty, part-time chairman and independent director of HDFC Bank, has resigned from his post due to ‘ethical differences’.
The central bank said in a statement that it has taken cognizance of the recent developments in HDFC Bank.
“The transition arrangements as requested by the Bank in respect of the post of Part-Time Chairman of the Bank have been approved by the Reserve Bank,” the RBI said.
RBI further said that in its periodic assessment it has not found any material concerns regarding the conduct or governance of the bank.
“The bank is well capitalized and its financial position remains satisfactory, with ample liquidity. The Reserve Bank will continue to engage with the board and management on the strategy going forward,” the central bank said in the statement.
With this, the Reserve Bank of India (RBI) has approved the bank’s request to appoint Keki Mistry as interim part-time chairman for a period of three months from March 19.
After Chakraborty’s resignation, Mistry told investors and analysts that there were no major problems in the bank. However, a decline in bank shares is being seen.
Speaking on the conference call, Mistry said that if this interim post was not in line with his values and principles, he would not have accepted it. “If it was not in line with my values and principles, I would not have taken on this responsibility at the age of 71,” Mistry said.
He further said that RBI is satisfied with the activities going on in the bank, which is evident from the fact that “they approved my appointment for three months in a short period of time.”
–IANS
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