HDFC Bank Chairman Atanu Chakraborty Resigns After Reported Power Struggle with CEO

HDFC Bank’s non-executive chairman Atanu Chakraborty stepped down abruptly last week, citing “ethical differences” in his resignation letter, according to a Financial Times report that points to a months-long power struggle with CEO Sashidhar Jagdishan.

The exit has raised fresh questions about leadership stability at India’s largest private sector lender. Chakraborty, who took the chairman’s role in 2021 after a long career at the Reserve Bank of India, had opposed the planned extension of Jagdishan’s tenure, sources told the FT. A majority of the board, however, supported the move.

Tensions reportedly centered on differences in strategy, governance practices, and overall leadership direction following the bank’s landmark merger with HDFC Ltd. The chairman’s letter highlighted a growing mismatch between certain practices and his personal values and ethics.

In response, the bank’s board has launched a detailed legal review of the situation. Three law firms including Wadia Ghandy, Trilegal, and an international counsel have been tasked with examining two years of board minutes, recordings, agendas, and whistleblower complaints. The review aims to provide an objective assessment and address any gaps, with multiple board-level discussions planned in the coming months.

CEO Sashidhar Jagdishan described the resignation as unexpected. He noted that the bank had encouraged Chakraborty to raise concerns through formal channels earlier, but none were formally escalated until the letter arrived. The bank said it is examining all options, including legal avenues.

HDFC Bank shares reacted sharply, with American Depository Receipts tumbling about 7 per cent in early trading.