HDFC Bank Engages External Law Firms to Review Chairman’s Resignation; Clarifies Termination of Three Employees

Shares of HDFC Bank rose 2 per cent in early trade on Tuesday, climbing to ₹759.20 compared with the previous close of ₹744.15. The stock had touched its 52-week low of ₹741.05 in the preceding trading session, reflecting recent pressure on the counter.

HDFC Bank Addresses Chairman’s Resignation

Earlier, HDFC Bank had announced the resignation of its Part-time Chairman and Independent Director, Atanu Chakraborty. In response to this, the bank issued a statement clarifying that the resignation letter had not expressed any concerns regarding unethical practices or anything that was against his personal values.

In order to be transparent in the matter, the Board decided to appoint law firms from both India and abroad to go through the contents of the resignation letter. They would then investigate the matter and revert within a reasonable period of time.

Atanu had been a part of the board since 2021 and had played an important role in an important phase for the bank. Interestingly, Atanu had been associated with the merger between HDFC Bank and HDFC Ltd, a $40 billion deal that created one of the biggest financial services organizations in India.

RBI Clears Interim Leadership

The Reserve Bank of India has approved the appointment of Keki Mistry as the interim non-executive chairman for a period of three months, starting March 19.

The central bank also reassured that HDFC Bank continues to remain systemically important, financially strong and professionally managed. It added that there are no material governance concerns regarding the bank at this point.

Bank Clarifies Termination of Employees

Separately, HDFC Bank responded to reports about the removal of three employees. The bank said the action followed an internal investigation related to a regulatory matter involving its Dubai branch.

The probe was initiated by the Governance, Nomination and Remuneration Committee. Based on its findings, the Disciplinary Committee recommended accountability measures, which resulted in the termination of the three employees.

The bank explained that the employees were not part of senior management. Moreover, the bank clarified that the action has no material impact on operations. Lastly, no regulatory or legal action has been initiated against the employees.

HDFC Bank: Assets, AUM, and Customer Base

As of December 31, 2025, HDFC Bank’s total assets under its standalone books stood at ₹40,88,900 crore, showing a rise of ₹3,29,900 crore as compared to the previous year.

The Advances Under Management (AUM) of HDFC Bank stood at ₹29,46,000 crore as of the end of the third quarter of the fiscal year 2026, showing a growth of 9.8% as compared to the previous year.

This is backed by the huge customer base of 10 crore as of December 2025, which is served through the extensive distribution network of 9,616 branches.

The bank indicates its robust financial position, with its capital adequacy standing at 19.9% and profit after taxation at ₹18,700 crore. As of March 24, HDFC Bank’s market cap stands at ₹11,65,019 crore.