The Reserve Bank of India (RBI) on Thursday said it has no material concerns regarding the conduct or governance of HDFC Bank, following the sudden resignation of its part-time chairman and independent director Atanu Chakraborty.

In an official statement, the central bank said it has taken note of recent developments and approved a transition arrangement for the position of part-time chairman, as requested by the bank.

“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 RBI said.

The release further noted that the bank remains well-capitalised with adequate liquidity. The regulator also noted it will continue to engage with the bank’s board and management going forward.

The statement comes a day after Chakraborty stepped down with immediate effect, citing ethical concerns. In his resignation letter dated March 17, he referred to “certain happenings and practices within the bank… not in congruence with my personal values and ethics,” without providing further details.

HDFC Bank, in a regulatory filing, said there were no reasons for his exit other than those mentioned in the resignation letter.

The sudden development weighed on investor sentiment, with the stock falling as much as 8.4% to ₹772 in early trade. It later trimmed losses to trade about 4.8% lower at ₹802.35, taking the bank’s market capitalisation to around ₹12.37 lakh crore.

Chakraborty’s departure cuts short his tenure, which was set to run until May 2027. A former bureaucrat, he was first appointed part-time chairman in April 2021 and reappointed in May 2024.

During his tenure, HDFC Bank completed its landmark $40 billion merger with HDFC Ltd, emerging as a financial services powerhouse. In his resignation note, Chakraborty indicated that the full benefits of the merger are yet to be realised.

Meanwhile, the bank’s board has appointed Keki Mistry as interim part-time chairman for a period of three months, effective March 19, with RBI approval.

Separately, HDFC Bank said it will host a call with analysts and investors at 9:00 am (IST) to discuss the developments disclosed on March 18. The details of the call are yet to be released by the bank.

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