- Reserve Bank of India approved HDFC Bank's transition plan after chairman's resignation
- RBI confirmed no material governance concerns at HDFC Bank
- HDFC Bank remains well-capitalised with satisfactory financial position
The Reserve Bank of India (RBI) issued a statement on Thursday, March 19, addressing recent developments at HDFC Bank following the resignation of the private lender's part-time chairman, Atanu Chakraborty.
The central bank approved HDFC Bank's transition plan following the recent development and assured the satisfactory financial position of the lender. It also clarified that there are no 'material' governance concerns in the bank.
Read Full Statement
The central bank said, "The Reserve Bank has taken note of the recent developments in HDFC Bank. A transition arrangement as requested by the Bank has been approved by Reserve Bank as regards the position of Part Time Chairman of the Bank. HDFC Bank is a Domestic Systemically Important Bank (D-SIB) with sound financials, professionally run board and competent management team."
It further added, "Basis our periodical assessment, there are no material concerns on record as regards its conduct or governance. The bank remains well-capitalized and the financial position of the bank remains satisfactory with sufficient liquidity. Reserve Bank will continue to engage with the Board and management on the way forward."
ALSO READ: HDFC Bank Part-Time Chairman Atanu Chakraborty Resigns, Cites Ethical Concerns
Atanu Chakraborty's Exit
On Wednesday, March 18, Atanu Chakraborty resigned as part-time chairman of HDFC Bank Ltd, saying that the practices in the bank did not align with his personal values and ethics. He said that his decision was driven by issues of principle rather than any operational or material factors.
Speaking to NDTV Profit following his resignation, Chakraborty said he is not trying to point out any wrongdoing at the bank and that his decision to resign came solely from ideological differences between him and the lender.
Chakraborty highlighted that he is not pointing out any malpractices within the HDFC Bank, and his decision to step down came essentially out of ideological differences.
"HDFC Bank is an organisation I nurtured for 5 years. I am not pointing out any wrongdoings at the bank. My ideologies did not match with the organisation, and hence it was time to part ways," he told NDTV Profit.
ALSO READ: 'Not Pointing Out Any Wrongdoing': Atanu Chakraborty Tells NDTV Profit After Resignation
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