HDFC Bank Ltd. has appointed external law firms to review the circumstances of its part-time chairman's abrupt resignation, a move aimed at reinforcing the bank's governance standards and shoring up investor confidence.
The board of directors approved the step to review Atanu Chakraborty's resignation letter, assess the situation leading up to his exit, and submit a report within a reasonable period of time.
Chakraborty stepped down unexpectedly over 'ethical' differences with the bank, sparking investor worries and a slide in the stock. He later clarified that his departure was 'routine' and not indicative of any wrongdoing.
The rift reportedly stemmed from differing views on accountability, particularly over client losses tied to risky bonds sold by Credit Suisse and recent restrictions imposed on HDFC Bank in Dubai.
The bank has removed three employees following an internal investigation.
