Key facts
- Law firms appointed by HDFC Bank found no merit in issues flagged by former Chairman Atanu Chakraborty.
- Chakraborty resigned citing alleged deviations 'incongruent' with his ethics and value systems.
- The review included examination of board meeting recordings, minutes, and agendas from the past two years.
- Whistleblower letters escalated to the board were also reviewed.
- The findings are expected to be submitted to the Audit Committee this week.
Law firms engaged by HDFC Bank to investigate concerns raised by its former Chairman Atanu Chakraborty have reportedly found no merit in the issues he flagged in his resignation letter. Chakraborty, a former Secretary at the Department of Economic Affairs and a retired IAS officer, had dramatically resigned on March 18, citing alleged deviations 'incongruent' with his ethics and value systems. This move sent shockwaves through India's banking sector and caused an immediate slide in the bank's stock.
The appointed firms, including domestic entities Wadia Ghandy and Trilegal, along with US-based Wilson Sonsini, conducted a detailed examination of board meeting recordings, minutes, and agendas from the past two years. They also reviewed whistleblower letters escalated to the board during this period.
Sources familiar with the development indicated that the law firms have not identified any evidence to substantiate Chakraborty's concerns. Their preliminary findings suggest no governance irregularities or ethical breaches of the nature implied in the resignation letter. The firms have reportedly communicated these findings informally to the bank's legal team.
The findings are expected to be formally submitted to the Audit Committee of the bank's board as early as this week. Following this, the full board will convene to deliberate on the report. HDFC Bank did not respond to a request for comment.