HDFC Bank has decided against pursuing legal action against Atanu Chakraborty, who resigned last month citing concerns over ethics and values. Despite the potential impact on the bank's reputation, HDFC Bank will concentrate on an internal review instead of litigation. Following Chakraborty's resignation on March 18, the bank appointed two domestic law firms, Wadia Ghandy & Co and Trilegal, along with one international firm, to investigate the governance issues raised in his resignation letter. Chakraborty indicated that the misselling of AT-1 bonds and the bank's underperformance were significant factors in his decision to step down. He expressed concerns that these conduct issues should have been addressed more proactively, rather than being treated as technical problems. Chakraborty had been with HDFC Bank since April 2021 and played a crucial role in the $40 billion merger with HDFC Ltd, which formed a major financial services entity.