HDFC Bank Is A Strong Institution With Strong Fundamentals: Govt Official
Earlier in the day, the Reserve Bank said there were no material concerns on record as regards the bank's conduct or governance
New Delhi: A day after HDFC Bank chairman Atanu Chakraborty’s exit from the bank, financial services secretary M Nagaraju said HDFC Bank is a strong institution with strong fundamentals. After the development, the Reserve Bank of India (RBI) has already issued a statement in this regard, he told the reporters.
The remarks come after the sudden exit of Chakraborty as chairman of HDFC Bank — the country’s second-biggest lender — effective March 18, 2026, citing ethical concerns. This is the first time that a part-time chairman of HDFC Bank has left mid-way, raising concerns over his functioning.
Earlier in the day, the Reserve Bank said there were no material concerns on record as regards the bank's conduct or governance. “HDFC Bank is a domestic systemically important bank (D-SIB) with sound financials, a professionally run board and a competent management team. Based on our periodical assessment, there are no material concerns on record as regards its conduct or governance,” the RBI said in a statement.
The statement emphasised that the bank remains well capitalised and its financial position remains satisfactory with sufficient liquidity. The RBI has approved a transition arrangement, as requested by the bank, as regards the position of its part-time chairman.
According to the HDFC Bank's regulatory filing, the RBI on Wednesday granted its approval for the appointment of Keki Mistry as an interim part-time chairman with effect from March 19, 2026, for a period of three months. “The RBI will continue to engage with the board and management on the way forward,” it added.
