The Reserve Bank of India (RBI) on Thursday said that HDFC Bank is a Domestic Systemically Important Bank (D-SIB) with sound financials, professionally run board and competent management team, after the resignation of part-time chairman Atanu Chakraborty over alleged “ethical differences” in one of the biggest private lenders.
The Central Bank said in a statement that it has taken note of the recent developments in HDFC Bank. “A transition arrangement as requested by the Bank has been approved by Reserve Bank as regards the position of Part Time Chairman of the Bank,” said the RBI. It added that basis its periodical assessment, “there are no material concerns on record as regards its conduct or governance”.
“The bank remains well-capitalised and the financial position of the bank remains satisfactory with sufficient liquidity. Reserve Bank will continue to engage with the Board and management on the way forward,” said the Central Bank in a statement. Chakraborty had resigned citing differences with the lender over “values and ethics”.