Big blast by former chairman of HDFC Bank, serious questions raised on the board after resignation

The internal dispute within HDFC Bank, one of the country’s largest private sector banks, has now come out into the open. Former chairman of the bank Atanu Chakraborty has raised very serious and sharp questions regarding the functioning of the bank board and the legal investigation initiated after his resignation. After these sensational statements of Chakraborty, there has been a stir in the corridors of banking sector and corporate governance of the country.

“The bank’s practices were against my personal values ​​and ethics.”
According to the reports received, Atanu Chakraborty surprised everyone by resigning from his post with immediate effect in the month of March this year. At that time, while resigning, he had made very serious comments that certain internal events and practices going on within the bank did not match his personal values, principles and ethics.

Chakraborty believed that after his tough action and resignation, the bank’s board would introspect and bring necessary reforms in the system. But now they allege that the entire matter has become just a “compliance exercise”.

Questions raised on clean chit of external law firms
The board remained silent even after asking for clarification]\

Following Atanu Chakraborty’s resignation and serious allegations, HDFC Bank had commissioned an independent legal review from external law firms. These law firms, in their report, gave a clean chit to the bank, saying that the allegations made by Chakraborty have not been confirmed on the basis of available documents and witnesses.

Now raising questions on this clean chit and the impartiality of the investigation, the former chairman has said that since leaving the post in March, he had repeatedly sought clarification and answers from the bank board regarding the scope of this independent legal review and its legal basis. But it is very surprising that the bank board has not yet given any answer to the serious questions raised by a person holding such a high position. This conflict between the former chairman and the board may also become a reason for the intervention of the banking regulator RBI in the coming days.