After almost two weeks of resigning from HDFC Bank, the former chairman Atanu Chakraborty has revealed that his decision to step down was driven by a growing disparity between his personal values and ethics and the bank’s practices he witnessed over time.
In his recent statements following his resignation, Chakraborty expressed that there wasn’t a single event that triggered his departure. Instead, he described a prolonged period of unease that eventually led to his dilemma due to a mismatch in values.
Chakraborty emphasized that his decision was not tied to a specific date or incident but was a culmination of ongoing concerns that had been escalating gradually. He underscored the importance of integrity, transparency, and accountability in his role as an independent director to safeguard the interests of shareholders and depositors.
Furthermore, Chakraborty alluded to governance issues and mentioned specific instances, such as concerns regarding customer onboarding practices in the bank’s Dubai operations that had faced regulatory scrutiny since 2018. He stressed the significance of addressing conduct issues proactively rather than reactively to prevent reputational risks.
In addition to governance worries, Chakraborty highlighted areas of underperformance within the bank, including shareholder value optimization, CASA levels, and cost-to-income ratio. He clarified that these concerns were distinct from the successful merger with HDFC Ltd, which he deemed a positive move for the bank’s asset side.
Throughout his interview, Chakraborty reiterated the importance of upholding values like honesty and fairness as an independent director. He emphasized the need for robust internal systems to prevent misconduct and advocated for a proactive approach to prevent issues before they emerge, rather than merely reacting to them.
Chakraborty described his decision to resign as a personal one, driven by a misalignment in fundamental beliefs. Despite his departure, he expressed confidence in the bank’s middle management and their ability to shape its future positively.