There is a sentence in Atanu Chakraborty’s resignation letter that every investor, regulator, and board member in Indian banking/BFSI sector will be reading very carefully today: "Certain happenings and practices within the bank, that I have observed over last two years, are not in congruence with my personal values and ethics."
That is it. No specifics. No names. No operational breakdown. Eight words — "not in congruence with my personal values and ethics" — from the former Economics Affairs Secretary (and IAS officer) of India, who had served as Part-time Chairman and Independent Director of HDFC Bank since May 2021, have already begun to do the damage.
By the time markets opened on Thursday, more than ₹65,000 crore disappeared from HDFC Bank’s market capitalisation in a matter of hours. The stock touched a 52-week low on both BSE and NSE, falling as much as 8.7 per cent in early trade, as investors scrambled to make sense of Chakraborty’s resignation letter.
What we know from the official filing
Chakraborty’s resignation letter, dated March 17, 2026, was addressed to the Chairman of the Governance, Nomination and Remuneration Committee of the Bank's Board. The Bank received the letter on March 18, 2026, and filed an intimation with BSE and NSE.
The Bank confirmed in its regulatory filing that "there are no reasons other than those mentioned in the said letter" for his resignation, and separately confirmed that Chakraborty does not hold directorship in any other company.
In its place, the Reserve Bank of India, responding to an application by the bank on the same day, approved Keki Mistry as interim Part-time Chairman with effect from March 19, 2026, for a period of three months.
Interim chairman Keki Mistry, speaking after the filing, offered no specifics.
In his letter, Chakraborty also offered one unusually candid observation about one of India’s biggest private banks: "I observed great amount of energy and verve in the middle and junior levels of the organisation, that should form the core of a reimagined organisation."
FULL TEXT OF THE RESIGNATION LETTER
"To
The Chairman Governance, Nomination, Remuneration Committee HDFC Bank
Subject: Resignation from the position of Part-Time Chairman & Independent Director of the Bank
Dear Dr. Bhanwala Ji,
I hereby tender my resignation from as Part-time Chairman and Independent Director on the Board of HDFC Bank, with effect from its date of its consideration by Board of HDFC Bank.
I joined the Board of HDFC Bank in May 2021. My tenure on the Board saw momentous events like merger of the bank with HDFC Ltd that created a conglomerate under the Bank. This strategic initiative made HDFC Bank the second largest Bank in the country. Though, the benefits of merger are yet to fully fructify.
Certain happenings and practices within the bank, that I have observed over last two years, are not in congruence with my personal Values and Ethics. This is the basis of my aforementioned decision.
I confirm that there are no other material reasons for my resignation other than those stated above.
I would like to express my sincere appreciation to the Board and senior management for their co-operation and support during my tenure. I express my gratitude to all the Independent Directors and Non-Executive Directors, who spared their valuable time and shouldered onerous responsibilities on the Board and its Committees. It has been a privilege to contribute to the growth and governance of the Bank. I observed great amount of energy and verve in the middle & junior levels of the organization, that should form the core of a reimaged organization. I also place on record my sincere appreciation for Secretarial, Compliance, Audit and Group oversight functions.
Kindly instruct Company Secretary to take this letter on record and arrange to file the necessary intimations with the Registrar of Companies and other regulatory authorities as required under applicable law.
I wish the Bank continued success in all its future endeavors.
I remain,
Yours sincerely,
Atanu Chakraborty
Part-time Chairman & Independent Director, HDFC Bank
Date: 17/03/2026"
As of now, HDFC Bank or the apex lending body is yet to come out with a detailed statement on the events that transpired.