- Keki Mistry has denied any internal power struggle at HDFC Bank after chairman's exit
- Board has not received detailed explanation from Atanu Chakraborty on resignation issues
- Chakraborty cited ethical differences, not operational or material reasons, for resignation
HDFC Bank Ltd. interim chairman Keki Mistry on Thursday denied any internal power struggle within the bank and said the board is yet to receive specific explanations from outgoing chairman Atanu Chakraborty regarding issues raised in his resignation letter. Keki also assured stakeholders that there are no material or operational issues with India's top private sector lender.
"There was no power struggle in the bank," Mistry, who took over as interim part-time chairman for a period of three months, said in a conference call. "Differences on minor issues come up from time to time. There was no material difference between Atanu and the board," he added.
Mistry said there were no specific operational issues highlighted by Chakraborty and none of the board members have received detailed explanation from him on the "ethical misalignment" he flagged.
In his resignation letter, Chakraborty stated that his decision was driven by issues related to principles rather than any operational or material factors. He clarified that there were "no other material reasons" behind his move.
"Certain happenings and practices within the bank, that I have observed over last two years, are not in congruence with my personal Values and Ethics. This is the basis of my aforementioned decision. I confirm that there are no other material reasons for my resignation other than those stated above," the letter said.
Sources told NDTV Profit Chakraborty's abrupt exit comes on the back of differences with other management and board members and were not linked to any regulatory concerns. He was seen colliding with executive leadership and not aligned on key strategic decisions like the HDB Financial Services Ltd.-MUFG deal talks last year.
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HDFC Bank Share Price Movement
Strong Governance
Keki Mistry said HDFC Bank operates with strong governance standards and risk management. "The strategic direction and business priorities remain as always. Our oversight remains fully strong and responsible, Our disclosures are in line with regulatory mandates... The bank operates with strong governance standards and an experienced management team. The governance is built on transparency institutional integrity," he said.
The veteran banker also shared that he happened to be on a leave of absence in Delhi on Wednesday when Chakraborty quit on short notice. The resignation letter was received by the board in the evening, directors in Mumbai met with the RBI later and got approval for Mistry's interim appointment.
ALSO READ: HDFC Bank Share Price In Focus After Interim Chairman Quits Citing Ethical Misalignment
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