Mumbai: A recent boardroom dispute at HDFC Bank has drawn the attention of the Reserve Bank of India (RBI), raising questions around internal governance at India’s largest private lender.
RBI Seeks Meeting Records
The RBI has asked HDFC Bank to submit detailed information about its board meetings held on March 17 and 18. This includes official minutes, along with audio and video recordings of the discussions. The regulator is also reviewing the events that led to the resignation of then Chairman Atanu Chakraborty after a disagreement during the meeting.
Dispute Within Leadership
The issue reportedly began with a disagreement between Chakraborty and the executive management team led by Managing Director and CEO Sashidhar Jagdishan. The argument took place during the board meeting and escalated tensions within the leadership. Following this, Chakraborty stepped down from his position.
NRC Meeting Under Review
Apart from the board meetings, the RBI has also sought details of the Nomination and Remuneration Committee (NRC) meeting held on March 17. Sources indicate that differences during this meeting further deepened the conflict, eventually contributing to Chakraborty’s resignation.
RBI Examines Both Sides
The central bank is trying to understand whether the information shared earlier by Chakraborty accurately reflects what happened during the meetings. He had reportedly met RBI officials earlier this week. Typically, companies get 14 days to prepare board meeting minutes, though it is unclear if RBI has set a deadline in this case.
Shares Show Recovery
After Chakraborty’s resignation, HDFC Bank shares initially fell sharply. However, the stock has since recovered. On March 25, shares rose 1.99 percent to close at Rs 780.10, showing renewed investor confidence despite the governance concerns.
