The clock is ticking. Thursday, June 18, will mark three months since Atanu Chakraborty abruptly resigned as the part-time chairman of the country’s second-largest lender, HDFC Bank, citing differences over ethics and values. The bank was swift to announce HDFC veteran Keki Mistry as the interim chairman and a team of external law firms was appointed to conduct a review regarding his resignation letter.

Atanu Chakraborty had resigned as the part-time chairman of HDFC Bank on March 18, citing that certain practices at the bank were not in congruence with his personal values and ethics.

But the bank is yet to appoint a chairman, given that Mistry’s appointment as interim chairman was only for three months. The findings of the external law firms have also not been made public so far.

Indications are that the bank’s board is likely to meet on Thursday, June 18, and the report of the law firms is expected to be on the agenda. A report by the Economic Times has also suggested that the board may also consider a possible three-month extension for Mistry. However, any extension for Mistry will need the Reserve Bank of India’s green signal.

Industry analysts say the legal report is unlikely to flag any major issues. Chakraborty himself had clarified a few days after his resignation that the issues were only about ethics and values.

“After what happened, the way Chakraborty resigned, the Reserve Bank will be cautious about who is appointed as the next chairman,” said an industry analyst.

The tenure of Sashidhar Jagdishan, MD and CEO of HDFC Bank, is also coming up for renewal later this year. However, analysts say that the matter may be taken up only after the appointment of the chairman is confirmed.

HDFC Bank has so far not offered any comments on Thursday’s board meeting or the findings of the external law firms.

Meanwhile, analysts say the special window announced by the Reserve Bank of India for banks to raise FCNR (B) deposits to boost the country’s forex reserves, could benefit large lenders like HDFC Bank, as they may be able to garner a larger chunk of the deposits.

“The RBI’s FCNR window could be a tailwind for larger banks like HDFC Bank in terms of garnering more deposits, since they have a strong presence overseas,” the analyst said.

The views were echoed by other analysts in recent days.

“The market concerns that have weighed on HDFC Bank are not independent problems. Deposit growth lagging expectations, the CD (credit-deposit) ratio being above management’s guidance, the LCR (liquidity coverage ratio) being the lowest among large private peers, and a higher reliance on short-term wholesale funding**—they are** the same problems viewed from different perspectives. The RBI’s FCNR (B) scheme could address all these in a single window, making HDFC Bank a potential standout beneficiary in our coverage,” said Nomura analyst Ankit Bihani.

The bank could garner 15 per cent of overall FCNR flows, he estimated.

All eyes, meanwhile, will now be on the findings of the legal report and clarity on the leadership.

Published on: Jun 17, 2026 9:16 PM IST