HDFC Bank announced significant leadership changes on March 18, 2026, with the resignation of its Part-time Chairman and Independent Director, Mr. Atanu Chakraborty, and the appointment of Mr. Keki Mistry as interim Part-time Chairman. The developments were communicated to stock exchanges under regulatory disclosure requirements.

Chairman's Resignation Details

Mr. Atanu Chakraborty (DIN: 01469375) tendered his resignation as Part-time Chairman and Independent Director with immediate effect on March 18, 2026. In his resignation letter dated March 17, 2026, Chakraborty cited specific concerns about the bank's internal practices as the primary reason for his departure.

Reasons for Departure

In his resignation letter addressed to the Governance, Nomination, Remuneration Committee, Chakraborty stated that "certain happenings and practices within the bank, that I have observed over last two years, are not in congruence with my personal Values and Ethics." He confirmed that there were no other material reasons for his resignation beyond those stated.

Chakraborty acknowledged the bank's significant achievements during his tenure, particularly highlighting the merger with HDFC Ltd that created a conglomerate and made HDFC Bank the second largest bank in the country. However, he noted that "the benefits of merger are yet to fully fructify."

Interim Leadership Appointment

The Reserve Bank of India granted approval on March 18, 2026, for the appointment of Mr. Keki Mistry (DIN: 00008886) as interim Part-time Chairman. The appointment follows an application made by the bank for this interim arrangement.

Board's Response and Acknowledgments

The Board of Directors placed on record its appreciation for Chakraborty's contribution during his tenure and wished him success in future endeavors. In his farewell message, Chakraborty expressed gratitude to the Board, senior management, and fellow directors for their cooperation and support.

He particularly commended the energy and dedication observed in the bank's middle and junior management levels, describing them as forming "the core of a reimagined organization." Chakraborty also acknowledged the contributions of the bank's Secretarial, Compliance, Audit, and Group oversight functions.

Regulatory Compliance

The bank confirmed compliance with all regulatory disclosure requirements under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The resignation letter has been filed with appropriate regulatory authorities as required under applicable law. The communication was signed by Ajay Agarwal, Company Secretary and Group Head – Secretarial & Group Oversight, ensuring proper documentation and regulatory adherence.

HDFC Bank has received updated credit ratings from India Ratings and Research Private Limited, with the rating agency affirming the bank's strong financial position while assigning new ratings to additional funding instruments. The comprehensive rating action, announced on March 17, 2026, covers multiple debt instruments and reflects the bank's systemic importance in India's banking sector.

Rating Actions and Instrument Details

India Ratings affirmed HDFC Bank's Long-Term Issuer Rating at 'IND AAA' with a Stable Outlook, maintaining the highest credit quality assessment. The rating agency took specific actions across various instruments, demonstrating confidence in the bank's diverse funding capabilities.

The assignment of 'IND A1+' rating to new certificates of deposit worth INR250 billion expands the bank's short-term funding options, while the affirmation of existing ratings provides continuity for investors across different instrument categories.

Financial Strength and Market Position

The ratings reflect HDFC Bank's dominant position as India's largest private sector bank and second-largest overall after State Bank of India. At FYE25, the bank maintained significant market shares with 12.00% in deposits and 14.40% in net advances, demonstrating its systemic importance in the Indian banking system.

The bank's financial metrics showcase robust performance indicators that support the rating assessment:

Growth Trajectory and Strategic Focus

HDFC Bank demonstrated balanced growth across its loan portfolio during 3QFY26, with overall advances growing 11.90% year-on-year. The commercial and rural banking portfolio expanded 16.80% year-on-year, forming 25.40% of the overall loan book and extending the bank's reach to 235,000 villages.

The retail segment commands 51.00% share of the loan book compared to 39.30% pre-merger, with both retail mortgages and non-mortgages portfolios showing steady growth of 6.60% and 5.90% year-on-year respectively. The bank's extensive network of 9,616 branches supports its customer acquisition strategy and deposit mobilization efforts.

Capital Adequacy and Risk Management

The bank maintains strong capital buffers with a standalone CET1 ratio of 17.40% in 3QFY26, positioning it at the higher end of its peer range. The provision coverage ratio stood at 65.90% in 3QFY26, while additional provisions and floating contingent buffers of INR371 billion provide 3.10x coverage of net NPAs.

India Ratings highlighted the bank's stable through-the-cycle performance, efficient risk management practices, and strong liability franchise as key rating strengths. The agency noted that HDFC Bank's focus on bringing equilibrium to its loan-to-deposit ratio remains a near-term consideration, with the CD ratio at 98.70% in 3QFY26 compared to the target operating range of 85%-90%.

Regulatory Compliance and Outlook

The rating agency maintained a Stable Outlook, reflecting confidence in HDFC Bank's ability to sustain its market position and financial performance. The bank's classification as a domestic systemically important bank by the Reserve Bank of India since 2017 underscores its critical role in the Indian financial system.

For the newly assigned certificate of deposit ratings, the instruments carry a validity period of 30 calendar days from the rating letter date for issuance purposes, with ratings remaining valid for a maximum of one year post-issuance, subject to ongoing review and monitoring by India Ratings.