HDFC Bank Managing Director and CEO Sashidhar Jagdishan has, for the first time, addressed the governance controversy triggered by the sudden resignation of former part-time Chairman Atanu Chakraborty, calling it one of the bank's most challenging episodes that raised questions over its corporate governance standards.
In HDFC Bank's FY2026 Annual Report, Jagdishan said the board acted swiftly by appointing independent external law firms to conduct a comprehensive review of the allegations made in Chakraborty's resignation letter. According to the bank, the investigation did not find evidence to substantiate the allegations.
Atanu Chakraborty's Sudden Exit Triggered Governance Concerns
Former part-time Chairman Atanu Chakraborty resigned on March 18, 2026, despite having more than a year left in his tenure.
In his resignation letter, he cited ethical concerns, prompting widespread discussion among investors and raising questions about HDFC Bank's governance framework.
Jagdishan acknowledged that the resignation created a highly sensitive situation for the bank and required immediate action to maintain stakeholder confidence.
HDFC Bank Ordered an Independent External Investigation
To ensure transparency, HDFC Bank's board appointed reputed domestic and international law firms to independently examine the issues raised in Chakraborty's resignation letter.
The move was considered particularly important because HDFC Bank's American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE), requiring strong governance standards and transparent disclosure practices.
The external investigation reviewed bank documents, governance processes and witness statements.
What Did the Investigation Find?
According to the findings shared by HDFC Bank on June 26, 2026, the independent legal review did not substantiate the allegations mentioned in Chakraborty's resignation letter.
Jagdishan said the external firms found no evidence supporting the governance-related claims after examining the available records and testimonies.
The bank believes the findings reinforce its commitment to maintaining high corporate governance standards.
Rajiv Kumar Takes Over as Part-Time Chairman
Following the leadership change, HDFC Bank appointed Rajiv Kumar as its new part-time Chairman.
Kumar brings extensive experience in India's banking and financial sector, having previously served as Secretary, Department of Financial Services, and later as Finance Secretary.
The bank said his experience in handling banking reforms during periods of financial stress would strengthen governance and strategic oversight.
Governance Framework to Become Stronger
Jagdishan said HDFC Bank will continue strengthening its internal governance mechanisms by:
Enhancing risk management systems
Updating internal control processes
Strengthening oversight across subsidiaries
Improving compliance and governance practices
Investing in technology-driven monitoring systems
The CEO reiterated that maintaining customer trust and shareholder confidence remains the bank's top priority.
Former Chairman's FY2026 Remuneration
The annual report also disclosed that Atanu Chakraborty's total remuneration increased by 3.53% during FY2026.
Key details include:
Total earnings: ₹1.07 crore
FY2025 remuneration: ₹1.03 crore
Fixed remuneration approved by RBI: ₹50 lakh
Balance received through meeting fees and other eligible payments
HDFC Bank Reports Strong Financial Performance
Despite the governance controversy, HDFC Bank reported healthy business growth during FY2026.
According to Jagdishan, the bank continued to deliver:
Strong growth in advances
Healthy deposit expansion
Stable profitability
Robust asset quality
Strong balance sheet performance
AI and Technology to Drive Future Growth
Looking ahead, HDFC Bank plans to further strengthen its digital capabilities by expanding the use of Artificial Intelligence (AI) and advanced technologies.
The bank expects AI to improve:
Customer experience
Risk assessment
Operational efficiency
Service delivery
Digital banking capabilities
Jagdishan emphasized that the true strength of a financial institution is demonstrated not only during favorable business conditions but also in its ability to consistently serve customers and shareholders during challenging periods.
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