HDFC Bank Board To Review Law Firms’ Findings On Former Chairman’s Concerns On Wednesday
· Free Press Journal
The HDFC Bank is set to review the findings of law firms which examined the various concerns raised by former Chairman Atanu Chakraborty in his resignation letter.
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The board will also consider a three-month extension for interim chairman Keki Mistry, according to a report by The Economic Times.
It was earlier reported that the law firm panel did not find governance issues or ethical issues of the nature implied by by Chakraborty in his resignation letter.
The review was conducted by law firms Trilegal and Wadia Ghandy & Co after Chakraborty resigned in March before the end of his term.
His departure had sparked concerns among investors and market participants because he referred to differences between his personal values and the bank’s culture in his resignation letter.
The review comes at a time when HDFC Bank is under close watch from investors after its merger with Housing Development Finance Corporation in 2023.
HDFC Bank Begins Search For New CFO As Srinivasan Vaidyanathan Nears ExitInvestors have been monitoring the bank’s management stability and governance standards as it works through integration challenges and slower deposit growth.
The Reserve Bank of India had earlier stated that it did not find any material concerns regarding the bank’s financial soundness or governance after Chakraborty’s resignation.
Some reports had indicated that Chakraborty’s exit could have been the result of a leadership clash with CEO Jagdishan.
The positive development sent HDFC Bank shares up by 3 percent in intraday trading on Thursday as investor sentiment improved. The stock later gave up part of the gains but still closed higher.
RBI Governor Warns Against Opaque Interest Rate Practices Amid HDFC Bank-MSRDC RowEarlier, HDFC Bank has already denied any wrongdoing.
However, media reports had also alleged that the bank paid Rs 45 crore to Maharashtra State Road Development Corporation (MSRDC) as marketing spends.
The payments were made as part of the bank’s offer of giving the corporation an interest rate of 6.01 percent.
The bank had denied any wrongdoing on its part.
“We strongly reject any assumptions of wrongdoing or culpability based on selective material. All issues are dealt with in accordance with established norms, and the full process is always followed before final determination after any internal review,” an HDFC Bank spokesperson had said.