HDFC Bank Board June 18 Meet: Legal Finding on Atanu Chakraborty's Exit, Keki Mistry Extension In Focus

HDFC Bank’s board is scheduled to meet on June 18 to review findings of an independent legal examination into issues raised by former chairman Atanu Chakraborty in his resignation letter earlier this year.

According to a report by The Economic Times, the meeting will focus on the findings submitted by law firms appointed by the bank after Chakraborty stepped down on March 18, citing certain developments over the previous two years that he said were not aligned with his ethics and value systems.

Audit Review Completed Ahead of Board Meeting

Ahead of June 18 board meeting, members of the bank’s audit committee reportedly met on Tuesday to discuss findings of the legal review before the matter is taken up by the full board.

ET had earlier reported that law firms appointed by the bank found no merit in concerns flagged by Chakraborty. Sources cited by the publication said preliminary findings did not point to governance irregularities or ethical breaches of the nature implied in the resignation letter.

The review was conducted by legal firms Wadia Ghandy, Trilegal and US-based Wilson Sonsini, which examined board meeting recordings, agendas, minutes and whistleblower complaints from the past two years.

Keki Mistry Extension Also on Agenda

Apart from reviewing the report, the board will also consider a three-month extension for interim part-time chairman Keki Mistry, whose term ends on June 18.

According to sources cited by ET, the bank has already approached the Reserve Bank of India (RBI) seeking approval for the extension, though a response is still awaited.

In an earlier report published on May 18, ET had said the bank’s management and board believed the process of appointing a new chairman should move forward only after findings of the ongoing legal review are placed before the board. The report had also said that interim chairman Keki Mistry has indicated that he may not continue in the role once the current transition period ends.

A source involved in the discussions told the publication that while there is “nothing extraordinary” about the June 18 board meeting, the bank will wait for RBI’s response before deciding its next course of action regarding the leadership transition.