RBI extends Keki Mistry's term as HDFC Bank interim chairman by 3 months
The Reserve Bank of India (RBI) on Thursday approved a three-month extension for Keki Mistry as HDFC Bank’s interim part-time chairman, the lender said in
The Reserve Bank of India (RBI) on Thursday approved a three-month extension for Keki Mistry as HDFC Bank’s interim part-time chairman, the lender said in an exchange filing. Mistry, who took over as interim chairman on 18 March, will continue in the role until 18 September or until a regular part-time chairman is appointed, whichever is earlier. Mistry previously served as chief executive officer of erstwhile Housing Development Finance Corp. before its merger with HDFC Bank in 2023. Mistry's extension comes amid HDFC Bank’s board meeting on Thursday to review the findings of law firms appointed to examine concerns raised by former chairman Atanu Chakraborty in his resignation letter dated 17 March.
The bank did not disclose its findings from the review. In his letter, Chakraborty had cited “certain happenings and practices within the bank” that were “not in congruence” with his personal values and ethics. The bank subsequently appointed law firms Trilegal and Wadia Ghandy & Co to check the minutes of the board meetings and see if there were any discrepancies that Chakraborty had pointed out, but did not elaborate upon, according to a Mint report. On 8 June, Mint had reported that a US-based law firm was also appointed by the board and the firm was yet to finalize its findings.
In an interview with CNBC-TV18 on 30 March, Chakraborty had hinted that the “mis-selling” of Credit Suisse’s perpetual bonds was a bone of contention between him and the bank's management. The bank has reiterated that Chakraborty “did not mention any happenings and practices which were not in congruence with his personal values and ethics”. The RBI has backed the bank amid the developments. Following Chakraborty’s resignation, the central bank said there were “there are no material concerns on record as regards its conduct or governance”. Deputy governor Swaminathan J. said in April that supervisory concerns, whenever they arise, are addressed on an ongoing basis.
Separately, a report by The Indian Express in May said HDFC Bank had routed payments worth ₹45 crore to the Maharashtra State Road Development Corporation (MSRDC) as marketing expenses, effectively offering higher returns on deposits. The bank denied any wrongdoing and said it “strongly rejects” suggestions of culpability based on selective information.
The BriefWire