A fresh standoff has emerged between former HDFC Bank Chairman Atanu Chakraborty and the lender following a three-month independent investigation into his sudden exit. According to a report by The Economic Times, Chakraborty has rejected the bank's claims that he failed to cooperate with the external legal review, asserting instead that the entire probe was a "roving inquiry" and an "exercise in futility." 

Chakraborty, a former bureaucrat, strongly contested the bank's narrative regarding his non-participation. He stated that he had repeatedly requested the bank to provide the specific terms of reference and the relevant legal framework under which the outside lawyers were operating. 

"I had repeatedly asked, after they approached me for a discussion on this, that they share the terms of reference for these two or three lawyers, including one from a territory outside India," Chakraborty said in an interview with The Economic Times. "...I have disconnected from the bank. I have nothing to do with them anymore. They have been economical with the truth when they say that I did not cooperate or did not provide information. That is unfair and not gentlemanly."  

He further clarified the underlying intent behind his sudden departure, emphasizing that it was never meant to trigger an external corporate investigation. "My resignation was also a call of conscience," Chakraborty said. Chakraborty argued that if the board meetings were conducted robustly, external lawyers could only perform basic compliance checks on the proceedings.

The friction traces back to March 18, 2026, when Chakraborty abruptly stepped down from his position, citing that "certain happenings and practices" within the country's second-largest lender over the previous two years were "not in congruence" with his personal values and ethics.

In response, HDFC Bank's board commissioned US-based Wilson Sonsini Goodrich & Rosati and India's Wadia Ghandy & Co to investigate the claims. The law firms recently concluded their review, stating in a stock exchange filing that Chakraborty's assertions were "not substantiated" by documentary evidence and noted that he did not participate in the probe despite repeated requests. 

The independent review had also touched upon a controversial matter involving HDFC Bank's Dubai branch, where allegations of mis-selling Credit Suisse AT-1 bonds had surfaced. The law firms reported finding no evidence that Chakraborty had raised ethics or values-related concerns regarding the issue during his tenure. 

Addressing this, Chakraborty stated that the Dubai matter had already been dealt with internally through appropriate administrative channels. "The bank has claimed that during the Dubai inquiry, I did not say anything. That inquiry led to the expulsion of very senior people plus a disciplinary action," Chakraborty told ET. "After that, naturally, my question would have been: What are the mitigation steps? There was a full mitigation plan, which the board reviewed. If I found the mitigation measures and the punishments satisfactory, then that was the end of it. I don't know what they were trying to prove. I think this exercise is superfluous."  

With the legal review concluded, market analysts note that the bank's focus will now shift toward key regulatory and leadership milestones, including the appointment of a permanent part-time chairman and the potential re-appointment of Managing Director and CEO Sashidhar Jagdishan later this year. 

Published on: Jun 28, 2026 5:41 PM IST