'No material concerns': RBI approves HDFC Bank's chairman transition arrangement

The Reserve Bank of India (RBI) on Thursday issued an official statement on the recent developments at HDFC Bank Ltd, stating that it has approved a transition arrangement for the position of the bank's part-time chairman.

"A transition arrangement as requested by the Bank has been approved by Reserve Bank as regards the position of Part Time Chairman of the Bank," the central bank said.

The RBI also underscored the lender's financial strength and governance standards. "HDFC Bank is a Domestic Systemically Important Bank (D-SIB) with sound financials, 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-capitalized and the financial position of the bank remains satisfactory with sufficient liquidity," it added.

The Reserve Bank further stated that it will continue to engage with the Board and management on the way forward.

On the stock-specific front, HDFC Bank slumped 8.42 per cent to hit a one-year low of Rs 772, following the resignation of its part-time chairman and independent director Atanu Chakraborty.

HDFC Bank's newly appointed interim chairman Keki Mistry stated that the bank remains stable and that there are no material concerns following the sudden resignation Chakraborty over differences on "values and ethics."

Gaurang Shah, Senior Vice-President at Geojit Financial Services, said, "On the financials, there is nothing wrong with what we have seen in the quarter gone by and possibly in the fourth quarter (Q4 FY26) ahead, as well as in the next financial year. Those who have bought at higher levels can hold on. If you have investable funds, you can consider adding. This correction could be a good opportunity to nibble into the stock with a long-term view."