Veteran banker Keki Mistry said HDFC Bank Ltd. is aligned with his "principles and values", after he took over as interim part-time chairman of India's largest private-sector lender. "I would not have taken this responsibility if HDFC Bank had not been aligned with my principles and values," he told NDTV Profit on Thursday.
His comment comes after Atanu Chakraborty quit the top role citing concerns over practices that he said were not aligned with his personal values and ethics. In his resignation letter, he 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.
Mistry told a conference call 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. "Differences on minor issues come up from time to time. There was no material difference between Atanu and the board," he added.
Sources told NDTV Profit Chakraborty's abrupt exit came on the back of differences with other management and board members and was 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.
Shares of HDFC Bank took a beating on Thursday, with a nearly 9% drop on the NSE. The stock is down 25% from its 52-week high.
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