NewKerala.com

Keki Mistry Takes Helm at HDFC Bank, Cites Alignment with Personal Values

Veteran banker Keki Mistry has been appointed as the interim part-time Chairman of HDFC Bank for three months, effective immediately. Mistry accepted the role, emphasizing it was consistent with his personal values and principles. His appointment follows the resignation of former Chairman Atanu Chakraborty, who cited a misalignment with his ethics regarding bank practices. The Reserve Bank of India has stated it has no material concerns about the bank's governance and approved the transition swiftly.

Key Points: Keki Mistry Appointed Interim Chairman of HDFC Bank

  • Swift RBI approval for Mistry
  • Preceded by Chairman's resignation over ethics
  • RBI states no material governance concerns
  • Bank shares see significant intraday decline
3 min read

Keki Mistry says role of interim Chairman of HDFC Bank aligns with his values

RBI approves Keki Mistry as HDFC Bank's interim Chairman. Mistry says the role aligns with his values, as the bank addresses governance questions.

"At 71, I would not have taken up this responsibility if it did not align with my values and principles. - Keki Mistry"

Mumbai, March 19

As the Reserve Bank of India approved the appointment of veteran banker Keki Mistry as the interim part-time Chairman of HDFC Bank for a period of three months, effective March 19, the bank held a conference call with analysts. During the interaction, Mistry said he accepted the role as it aligned with his personal values and principles.

"At 71, I would not have taken up this responsibility if it did not align with my values and principles," he said.

He added that the developments leading to his appointment took place rapidly after the resignation of Atanu Chakraborty, with some board members meeting the Reserve Bank of India soon after.

"The developments happened at very short notice. After the Board meeting and the resignation, some directors met the RBI," Mistry said.

According to him, the central bank's swift approval reflects its comfort with the situation at the bank.

"The fact that the RBI approved my appointment within a short span indicates that it is comfortable with the situation at the bank," he added.

Meanwhile, the Reserve Bank of India on Thursday said there are "no material concerns" regarding HDFC Bank's conduct or governance following the resignation of part-time Chairman Atanu Chakraborty over ethical differences.

The central bank noted that the lender "remains well-capitalised" and its financial position continues to be satisfactory.

"The Reserve Bank has taken note of the recent developments in HDFC Bank. A transition arrangement as requested by the bank has been approved by the Reserve Bank with regard to the position of part-time Chairman," the RBI said in a statement.

It added that HDFC Bank, being a Domestic Systemically Important Bank (D-SIB), has sound financials, a professionally run Board and a competent management team.

In its filing, HDFC Bank said there were no reasons for Chakraborty's resignation other than those stated in his letter. It also noted that he does not hold directorship in any other company.

The Board expressed appreciation for Chakraborty's contribution during his tenure and wished him success in his future endeavours.

Chakraborty had joined the Board in May 2021 and stepped down, citing that certain developments and practices within the bank over the past two years were not in alignment with his personal values and ethics.

Shares of HDFC Bank declined as much as 8.41 per cent, hitting an intraday low of Rs 772 on the BSE. As of 11:28 am, the banking stock was trading at Rs 804, down 4.57 per cent on the exchange.

- IANS

Share this article:

Reader Comments

R
Rohit P
The share price drop is worrying, but the underlying message seems solid. If the RBI is comfortable and the bank's financials are sound, this might be a temporary market overreaction. Still, the reason for the previous chairman's resignation leaves some questions unanswered.
D
David E
Interesting to see two senior figures citing "personal values" as the core reason for their decisions—one for leaving, one for joining. It highlights that corporate governance isn't just about numbers, but also about culture and ethics. Hope the bank addresses whatever internal "practices" were concerning.
A
Aman W
HDFC Bank is a pillar of our banking system. Having a veteran like Keki Mistry at the helm, even temporarily, brings immense credibility. His experience is exactly what's needed right now. The market will stabilize. đź‘Ť
S
Shreya B
Respectfully, while Mr. Mistry's appointment is good, the bank's statement feels a bit too defensive. "No reasons other than those stated" – but the stated reason is quite vague. For transparency, shareholders deserve a clearer understanding of what "developments and practices" didn't align with ethics, without compromising confidentiality.
K
Karthik V
At 71, taking on such a high-pressure role shows true dedication. It's a positive signal that he accepted only because it aligns with his principles. Hope this interim period is used to thoroughly review governance and ensure long-term stability. Jai Hind!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50