While the lender has consistently maintained strong growth and market leadership, the bank has a series of incidents over the years, ranging from fraud and compliance lapses to data breaches and legal allegations. Notably, HDFC Bank's stock slid to a fresh 52-week low following the chairman's exit on Thursday to hit an intraday low of Rs 770 apiece.

2017-2018 (reported later) - Odisha CSR Account Incident

• Fraudulent withdrawal of Rs 59.41 lakh from Angul Collector's CSR account
• Done via 8 forged cheques
• Involved: Former HDFC Bank manager Shakti Vedanta Dash
• Arrested: 2019

2021 - Auto Loan Portfolio Irregularities (Compliance-linked)

• RBI imposed Rs 10 crore penalty
• Origin: Whistleblower complaint
• Issue: Irregular practices in auto loan portfolio handling
• Indicates internal process manipulation / compliance lapses

2023 - HDB Financial Services Data Leak

• 30 GB data leak affecting 7.3 million customers
• Subsidiary: HDB Financial Services
• Data exposed:
• Personal details (name, DOB, address)
• Loan & credit information

2025 - Lilavati Trust Bribery Allegation Case

• FIR alleges Rs 2.05 crore bribe
• Accused: CEO Sashidhar Jagdishan

Context

• Linked to Lilavati Trust dispute
• Connected to over Rs 65 crore loan default conflict
• CEO denied allegations; case contested in court

2026 - Chairman Resignation Linked to Ethical Concerns

• Atanu Chakraborty resigned (March 18, 2026)

Cited:

• "Certain happenings and practices"
• Chairman flags practices not aligned with personal ethics
• Observed over the last 2 years

HDFC In Focus

HDFC Bank came into the spotlight on Thursday following the resignation of part-time Chairman Atanu Chakraborty. The bank's stock also came under sharp selling pressure after Chakraborty stepped down, citing concerns over certain internal developments that he said were not in alignment with his personal values and ethics, triggering governance-related worries around the country's largest private lender.

In a conference call that the Bank hosted with analysts and investors on March 19, Keki Mistry, the new interim Chairman of HDFC Bank, said, "I want to emphasise I would not have taken this responsibility at the age of 71 if it did not align with my principles and integrity."

Mistry further said that he would like to assure all shareholders that there are no material issues behind the resignation, adding that the Reserve Bank of India has approved his appointment as interim part-time chairman for a period of three months. He emphasised that no operational issues have been flagged and reiterated that the bank continues to function with strong governance standards, while underscoring the collective resolve of the board and management to safeguard the interests of all stakeholders.

RBI's Statement

In a press release on Thursday, RBI said that it has taken note of the recent developments in HDFC Bank and highlighted that;

• A transition arrangement as requested by the Bank has been approved by the Reserve Bank as regards the position of Part-Time Chairman of the Bank.
• HDFC Bank is a Domestic Systemically Important Bank (D-SIB) with sound financials, a professionally run board, and a competent management team.
• Based on our periodic assessment, there are no material concerns on record as regards its conduct or governance.
• The bank remains well-capitalised, and its financial position is satisfactory with sufficient liquidity.
• Reserve Bank will continue to engage with the Board and management on the way forward.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)

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