HDFC Bank has completed the allotment of 13,85,694 equity shares to its employees under the Employee Stock Options Scheme (ESOS) and Restricted Stock Units (RSU) program. The allotment was executed on March 24, 2026, as part of the bank's ongoing employee incentive initiatives.

Share Capital Enhancement

The allotment has resulted in an increase in the bank's paid-up share capital structure. The following table shows the change in share capital:

ESOP Implementation Details

The shares were allotted pursuant to the exercise of options and RSUs by eligible employees under the bank's established Employee Stock Options Scheme. This scheme forms part of HDFC Bank's employee compensation and retention strategy, allowing employees to acquire equity stakes in the organization.

Regulatory Compliance

HDFC Bank has duly informed both the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) about this allotment under Regulation 30 of the listing requirements. The communication was signed by Ajay Agarwal, Company Secretary and Group Head – Secretarial & Group Oversight, ensuring proper regulatory compliance.

Corporate Communication

The bank's official communication was issued from its registered office at HDFC House, H T Parekh Marg, Churchgate, Mumbai, maintaining transparency with stakeholders and regulatory authorities about the change in share capital structure.

HDFC Bank faces continued scrutiny following the resignation of Chairman Atanu Chakraborty, with the board now appointing external law firms to investigate the circumstances surrounding his departure citing ethics concerns.

Board Initiates External Review

The Board of Directors approved the appointment of external law firms, both domestic and international, during their meeting held on March 23, 2026. This proactive step aims to conduct a comprehensive review regarding Chakraborty's resignation letter, with the firms advised to provide their report within a reasonable period of time.

Chairman Resignation Details

Atanu Chakraborty resigned as Part-Time Chairman and Independent Director on March 18, 2026, stating in his resignation letter that recent happenings at the bank over the past two months were not in congruence with his personal values and ethics. However, the bank clarified that Chakraborty did not mention any specific happenings and practices in his resignation.

Employee Dismissals and Regulatory Investigation

The bank explained that the dismissal of three employees came after an internal investigation triggered by a notice from the Dubai Financial Services Authority about its DIFC branch. This development provides additional context to the governance concerns that may have influenced the chairman's departure.

Career Background and Profile

Atanu Chakraborty built his reputation as a career bureaucrat shaped by India's administrative discipline. A 1985-batch IAS officer of the Gujarat cadre, he spent over three decades navigating complex policy terrains including finance, infrastructure, petroleum and economic policy. His career culminated as Secretary, Department of Economic Affairs in the Union Finance Ministry until his retirement in April 2020.

Governance Reinforcement Measures

To reinforce the robust governance standards of the bank, the board's decision to engage external legal expertise demonstrates a commitment to transparency and thorough investigation. The appointment comes as part of efforts to address any concerns raised by the former chairman's departure and the regulatory issues surrounding the Dubai branch operations.