HDFC Bank’s part-time chairman Atanu Chakraborty suddenly resigned from his post on Thursday. He resigned citing differences with the bank on values and ethics. After the resignation of Atanu Chakraborty, HDFC Bank’s own officer Keki Mistry has been appointed as the interim chairman. After this incident, there is panic among the common customers and investors of the bank, but the Reserve Bank of India (RBI) has come forward and provided support to the customers.
RBI on Thursday tried to calm speculations regarding governance related matters in HDFC Bank. Giving clarification on the controversy created after the resignation, RBI assured the country’s stock market that at present there is no major concern regarding the conduct or governance of the bank.
What did RBI say?
RBI said in its statement, ‘The board of the bank is professional and the management team is fully capable. Based on our regular monitoring and assessment, the financial position of the bank is strong, capital is adequate and there is no shortage of liquidity. RBI also said it will maintain constant touch with the bank’s board and management to decide the future direction.
Also read: Earthquake in HDFC Bank! Part-time chairman Atanu Chakraborty resigns
Outcry in the stock market
There was an outcry in the Indian stock market after the resignation of Atanu Chakraborty. On Thursday, the Sensex fell 2,497 points to close at 74,207, while the Nifty fell 776 points to close at 23,002, close to the 23,000 level. However, after RBI and banks assured customers, Sensex rose 976.77 points to 75,184.01 points in early trade on Friday while NSE Nifty rose 301.7 points to 23,303.85 points.
Keki Mistry assures investors and customers
In fact, the sudden resignation of part-time chairman Atanu Chakraborty had increased concerns about the internal workings of the bank. Meanwhile, Keki Mistry, the newly appointed interim chairman of HDFC Bank, has tried to reassure investors and its customers. Mistry said that there is no major problem in the bank. Regarding Chakraborty’s resignation, he said that this development is not related to any operational or governance related concern of the bank.
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His statement has come at a time when there is panic among customers. But, after the statements of AAPBI and Keki Mistry, it is clear that the foundation of HDFC Bank is strong, due to which there is no need for investors and its customers to panic.
‘There is no major concern in the bank’
Keki Mistry in his statement emphasized that there is no major problem inside the bank. The resignation will not make any difference to the bank. He also said that the bank is functioning with strong internal processes and high governance standards and there was no discussion on any major issue at the board level.
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