HDFC Bank appoints external law firms to probe ex-chairman's charges

Bengaluru: HDFC Bank on Tuesday announced the appointment of external law firms (domestic and international) to investigate and submit a report on the reasons for the sudden exit of Atanu Chakraborty as its part-time chairman and independent director.

In a stock exchange filing, the bank's company secretary said, "Chakraborty did not mention any happenings and practices which were not in congruence with his personal values and ethics.

To reinforce the robust governance standards of the bank, the board of directors of the bank at its meeting on Monday took a proactive step and approved the appointment of external law firms."

Chakraborty suddenly resigned as chairman of HDFC Bank, citing ethical concerns, on March 18. "Certain happenings and practices within the bank that I have observed over the last two years, are not in congruence with my personal values and ethics. This is the basis of my aforementioned decision," he said in his resignation letter.

In his letter to the Chairman of Governance, Nomination, Remuneration Committee HK Bhanwala, Chakraborty said that "there are no other material reasons for my resignation".

Chakraborty, a 1985-batch IAS officer of Gujarat cadre, was appointed part-time chairman of the bank with effect from May 5, 2021.