HDFC Bank Ex-Chairman Calls External Review "Superfluous"

Atanu Chakraborty, the former chairman of HDFC Bank, publicly questioned the need for an external legal review into his resignation on Friday, calling it "superfluous" in a statement. He said he declined to participate because the bank never clarified the investigation's scope or legal basis.

Chakraborty stepped down in January citing personal reasons. The board later disclosed that an internal governance review had flagged compliance issues during his tenure. The external review, led by a law firm, was commissioned to assess whether regulatory or procedural lapses occurred.

"The bank did not share the terms of reference or the legal framework under which this review was being conducted," Chakraborty said. "Without that, participation would have been meaningless."

HDFC Bank has not responded to his criticism. The chairman role remains unfilled, and CEO Sashidhar Jagdishan is leading the bank in the interim. The Reserve Bank of India last year directed HDFC Bank to strengthen its risk management framework after a series of technology outages. Chakraborty's public challenge sharpens the governance questions already circling the lender.

The bank's stock (HDB) has traded under pressure this year amid broader weakness in Indian financials and lingering scrutiny of its leadership transition. The external review is expected to conclude in the coming months. Its findings could influence how the board handles the succession process.

HDFC Bank's annual general meeting is scheduled for July. Shareholders are likely to press the board for details on the succession plan and the status of the external review.