HDFC Bank brings in external law firms to examine Atanu Chakraborty's resignation; clarifies on removal of 3 staff

HDFC Bank Ltd on Tuesday informed exchanges that its board has approved the appointment of external law firms, both domestic and international, to review the resignation letter of former part-time chairman and independent director Atanu Chakraborty, following his sudden exit.

"This is in furtherance to the intimation made by the Bank on March 18, 2026 in relation to the resignation of Mr. Atanu Chakraborty as the Part-time Chairman and Independent Director of the Bank. We wish to inform you that, Mr. Chakraborty did not mention any happenings and practices which were not in congruence with his personal values and ethics," HDFC Bank stated.

"To reinforce the robust governance standards of the Bank, the Board of Directors of the Bank at its meeting held on March 23, 2026, took a proactive step and approved the appointment of external law firms (domestic and international), to conduct review regarding Mr. Chakraborty's resignation letter. The said law firms have been advised to provide their report on the same within a reasonable period of time," the lender added.

Separately, the bank also issued a clarification regarding the removal of three employees in connection with a regulatory matter linked to its Dubai operations.

"This has reference to the intimation made by the Bank to the stock exchanges on September 26, 2025 regarding receipt of a decision notice from the Dubai Financial Services Authority (DFSA), by the Bank's branch in Dubai International Financial Centre (DIFC)," it stated.

"In relation to the said matter, the Governance, Nomination and Remuneration Committee (GNRC) of the Bank, directed an internal investigation to be done by an investigating officer in terms of the Conduct Regulations of the Bank and submit its report to the Disciplinary Committee. Based on the findings of the investigating officer, the Disciplinary Committee, after detailed discussions, provided its recommendations on the staff accountability actions to the GNRC," the bank also said.

"Thereafter, the GNRC at its meeting held on March 9, 2026, pronounced staff accountability actions against few employees inter alia including removal of these three employees from the services of the Bank. The employees have a right to appeal against the said order before the Appellate Authority, which in this case, is the Board of Directors of the Bank," it further stated.

Meanwhile, shares of HDFC Bank fell 4.70 per cent on Monday to close at Rs 743.75.