No single trigger: Former HDFC Bank chair cites a range of issues behind exit

Atanu Chakraborty, former part-time chairman of HDFC Bank, who stepped down abruptly on March 18, said on Monday that his resignation was not triggered by any single issue.

- SUBRATA PANDA

Instead, he said, it stemmed from a growing “incongruence” between the bank's practices and his own values and ethics over the past two years.

Chakraborty, a former Indian Administrative Service officer, said a range of concerns had contributed to his decision. These included the mis-selling of Additional Tier-I (AT1) bonds in Dubai, the underperformance of the bank’s share price, subdued credit growth, low current and savings account deposits, and a high cost-to-income ratio.

“My only point was that it was not congruent with my own sense,” he said in an interview with CNBC TV18. “It is material, but the materiality of it could vary, as I think my standards were different from the prevailing standards. In that case, it is better to move away without placing blame, while leaving the door open for introspection for the board. If the board introspects and feels all is well, I am a happy person.”

One of the things Chakraborty highlighted was the AT1 bond matter.

Two days after his resignation, the bank asked three executives to leave amid misselling concerns. According to the bank, it had identified certain gaps in client onboarding requirements at its Dubai International Financial Centre branch in the United Arab Emirates (UAE).