HDFC Bank loses ₹1 lakh crore in market value, RBI issues clarification on irregularities

New Delhi (The Uttam Hindu): The Reserve Bank of India has reassured investors about the stability of HDFC Bank, stating that it remains a domestic systemically important bank with a strong financial position and professional management. The clarification comes amid recent developments, including the resignation of part-time chairman and independent director Atanu Chakraborty over reported ethical differences.

The RBI said it has taken note of the situation and approved the bank’s proposed transition arrangement for the chairman’s role. It also emphasized that its regular assessments have not found any major concerns related to the bank’s governance or operations. According to the central bank, HDFC Bank continues to be well-capitalised, financially sound, and maintains adequate liquidity.

Following Chakraborty’s exit, the RBI approved the appointment of Keki Mistry as interim part-time chairman for three months starting March 19. Mistry assured investors that there are no significant issues within the bank and stated he accepted the role only because it aligns with his principles. He also noted that the RBI’s swift approval reflects its confidence in the bank’s functioning, even as its shares remain under pressure.