Keki Mistry, the man who built India's largest mortgage financier from the ground-up, has returned as interim chairman of HDFC Bank Ltd. following the shock resignation of part-time chairman Atanu Chakraborty.
Mistry, who was appointed by the Reserve Bank of India, has immediately begun to calm the nerves of investors and customers, assuring them that there is no power struggle within the bank.
His first task is to steady the ship that has been treading choppy waters since the mega HDFC Bank merger came to fruition in 2023, with the benefits of the merger yet to fructify.
Mistry has a dual mandate: project absolute stability and oversee a seamless transition after Chakraborty's shock exit.
He faces a challenging task, with the bank grappling with merger pangs, including a margin squeeze, a loan-to-deposit ratio issue, and a regulatory ban on its Dubai branch.
Despite the challenges, HDFC Bank's financials remain strong, with a consolidated net profit of ₹70,790 crore in FY25.
However, Chakraborty's resignation has raised concerns about governance standards and the potential impact on the bank's stock multiple.
Mistry has the support of the RBI, but he must assure institutional investors that the issues referenced in Chakraborty's resignation letter are isolated and not systemic cracks.
