HDFC Bank's Management Supports Keki Mistry as Interim Chairman Amid Leadership Transition
HDFC Bank senior management backs Keki Mistry to continue as chairman
Mint
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HDFC Bank's senior management, led by CEO Sashidhar Jagdishan, supports Keki Mistry's continuation as interim chairman beyond the initial three-month term following the resignation of Atanu Chakraborty. The bank's loan growth remains strong, with a 12% increase year-on-year, despite ongoing governance questions and geopolitical uncertainties.
- 01Keki Mistry has been appointed as interim part-time chairman after Atanu Chakraborty's resignation.
- 02HDFC Bank's loan growth rose by 12% year-on-year to βΉ3.17 trillion.
- 03The bank's net profit reached βΉ19,220 crore, exceeding analyst expectations.
- 04The Reserve Bank of India approved Mistry's interim role for three months from 19 March.
- 05Governance issues are under review, with external law firms involved in the process.
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Following the resignation of Atanu Chakraborty on 18 March, HDFC Bank's senior management is advocating for Keki Mistry to continue as interim part-time chairman beyond the initial three-month period. Sashidhar Jagdishan, the bank's managing director and CEO, expressed support for Mistry during the earnings call on 18 April, although the final decision will be made by the board's nomination and remuneration committee. Chakraborty's departure raised concerns about governance and internal controls, prompting the bank to engage external law firms to review his resignation letter.
Despite these challenges, HDFC Bank's performance remains robust, with a 12% year-on-year increase in loan growth, reaching βΉ3.17 trillion. Deposits also grew over 14% to βΉ3.91 trillion. The bank reported a net profit of βΉ19,220 crore, surpassing analyst expectations, driven by improved asset quality and lower provisions. Management noted that while geopolitical tensions may pose some risks, the bank's positive momentum is expected to continue, with a net interest margin of 3.38%.
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The leadership transition and ongoing governance reviews may affect investor confidence and operational stability at HDFC Bank, impacting loan availability for consumers and businesses.
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