HDFC Bank board to discuss law firms’ findings into former chairman Chakraborty’s exit on June 18

The board of private sector lender HDFC Bank will meet on June 18 to discuss the legal findings from the designated agencies, which were investigating the sudden resignation of former part-time chairman Atanu Chakraborty on March 18.

The board is also expected to discuss an extension to the term of the current chairman Keki Mistry, whose term is set to end on June 18. His term had been extended for a three-month period on March 19, 2026. The Reserve Bank of India is understood to have urged the bank to expedite the matter.

Mistry had earlier indicated that he might not want to continue, once his term ends.

The decision to decide on a new chairman is the first top leadership decision which HDFC Bank will undertake since Chakraborty’s exit.

The review into Chakraborty’s exit was carried out by legal firms Wadia Ghandy, Trilegal and US-based Wilson Sonsini. They examined board meeting recordings, agendas, minutes and whistleblower complaints over the past two years.

Chakraborty, in his resignation letter to the HDFC Bank board, had cited certain “happenings and practices” at the bank over the past two years, which were allegedly not in congruence with his “personal values and ethics”.

This event brought the spotlight on the Bank and the leadership of Sashidhar Jagdishan, as MD & CEO. The Bank has seen several high-profile exits during his tenure. Early in Jagdishan’s tenure, the RBI had also halted the Bank from issuing new credit cards from December 2020 to August 2021 due to technical outages. This ban was lifted later.

Jagdishan’s second term ends on October 26, 2026.

Sources at the legal firms said they found no concerns relating to governance at the Bank.

In April, RBI governor Sanjay Malhotra, responding to a media query after the monetary policy, said the central bank had examined the minutes of HDFC Bank’s board meetings, as part of the supervision, to determine any lapses in governance from the bank, as alleged by Chakraborty.

“At no point during our supervision or after examining their records did any governance or conduct-related material issue come to our notice. Under our regular supervision, board minutes are also reviewed. Copies of the minutes are provided to us," Malhotra said.

But the HDFC Bank stock has fallen 20% year-to-date to ₹787 levels and 6.6% since Chakraborty’s exit. In May-end, there was also a fresh allegation of HDFC Bank 'camouflaging' interest payments to a state road transport agency. The bank has denied any wrongdoing in this matter.

HDFC Bank reported a strong set of financial numbers led by 14.4% deposit growth in FY26, where it outpaced advances, which grew 10.2% for the year. Net profit came in at ₹19,221 crore for the quarter ended March 31 and ₹74,671 crore for FY26, showing a year-on-year growth of 9% for the quarter and 10.9% for the full fiscal.