The chairman who walked

Bank chairmen do not resign over "values and ethics". They cite personal reasons, health, other commitments. Atanu Chakraborty did the other thing - and ₹1 lakh crore of market value briefly vanished before lunch.

In March 2026, HDFC Bank's part-time chairman and independent director - a former economic affairs secretary who had joined the board in May 2021 - resigned with immediate effect. His letter, published in full by the Economic Times, said:

"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... I confirm that there are no other material reasons for my resignation other than those stated above."- Atanu Chakraborty's resignation letter, March 2026

The letter also praised "great amount of energy and verve" in the bank's middle and junior levels and thanked the board. The bank asserted there were no reasons beyond those in the letter. The market filled the silence itself: the stock fell over 8% to ₹770, intraday market-cap erosion briefly touched ₹1 lakh crore, and the ADRs kept falling in New York, per ET. Board members were "baffled"; CEO Jagdishan said every board member had urged Chakraborty to reconsider or elaborate, and he declined. The bank appointed external law firms to review the claims.

What the letter didn't say

Nine people - board members, current and former staff - described years of internal rifts to Reuters. On their account, Chakraborty involved himself unusually closely in operations and HR, in one instance changing senior executives' performance ratings - the CEO's prerogative. He clashed with Jagdishan over strategy and HR policies, and in 2024 opposed a proposed equity investment by Japan's MUFG in the bank's consumer-finance arm, objecting to a foreign entity and to the lack of a bidding process; the plan collapsed. Chakraborty told Reuters there is "a structure to handling various governance and accountability issues" without elaborating. The bank's management and the RBI denied any governance or financial problems.

Investor unease also touched the CEO's other relationships: on the post-resignation analyst call, Jagdishan was asked directly about a power struggle with deputy MD Kaizad Bharucha. "Kaizad is a very dear colleague," he answered, promising Bharucha "will only get more responsibilities."