New Delhi, July 11 (IANS) HDFC Bank has reaffirmed its commitment to the highest standards of corporate governance, saying an independent legal review found that the concerns raised by former chairman Atanu Chakraborty in his resignation letter were not substantiated by records reviewed and witness interviews, according to the bank’s annual report released on Saturday.
In its FY26 annual report, interim part-time Chairman Keki M. Mistry assured shareholders that the country’s largest private sector lender ‘remains strongly rooted in strong corporate governance principles and values’.
Chakraborty resigned as part-time chairman and independent director on March 18, triggering speculation over the bank’s governance standards. Mistry was subsequently appointed interim part-time chairman.
Managing Director and CEO Sashidhar Jagdishan said the bank’s board appointed domestic and international law firms to review the statement made by Chakraborty in his resignation letter, considering that HDFC Bank’s American Depositary Receipts (ADRs) are listed on the New York Stock Exchange.
The board also constituted a special committee comprising only independent directors to oversee the legal review and ensure the appropriate flow of information between the bank and the law firms, he said.
According to Jagdishan, the review covered board minutes, meeting materials, communications and interviews with all independent directors and several members of senior management for the two-year period preceding Chakraborty’s resignation.
The bank on June 26 shared the findings of the external law firms which, in essence, was that Chakraborty’s statement in his resignation letter and its implications were not substantiated by the record reviewed and witness interviews, Jagdishan said.
Mistry said the bank remains fully committed to maintaining the highest standards of transparency, accountability and oversight.
Following the completion of the review, the board appointed Rajiv Kumar as part-time chairman and independent director, subject to approvals from the Reserve Bank of India and the bank’s shareholders.
–IANS
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