HDFC Bank may not consider any legal action against former chairman Atanu Chakraborty, sources close to the development told ET Now. The lender is unlikely to seek damages and is instead focusing on strengthening its internal governance framework.
As part of this effort, the bank has mandated external law firms - Trilegal and Wadia Ghandy & Co - to conduct an independent review of the issues raised in the resignation letter. The scope of this review includes a detailed examination of governance processes, accountability mechanisms, and internal control systems.
Sources add that the board had earlier taken note of the concerns highlighted in the resignation letter, following which the decision was made to initiate an independent assessment. The review is currently underway and is expected to identify any potential governance lapses, if present.
Sources told ET Now
- HDFC Bank not mulling legal action against Atanu Chakraborty
- Bank unlikely to seek damages despite alleged reputational impact
- External law firms mandated to assess issues flagged in resignation letter
- The scope of review to cover governance processes, accountability and internal controls
- HDFC Bank had appointed appoints Trilegal and Wadia Ghandy & Co for independent review
- HDFC Bank to focus on internal review rather than litigation
- Board had earlier taken note of concerns raised in resignation letter
- Independent review underway to examine governance lapses, if any
- Law firms may submit separate reports to board for further action
- Move aimed at strengthening governance framework and board oversight
Importantly, the law firms are likely to submit separate reports to the board. These findings will then form the basis for any further action, including strengthening oversight mechanisms or refining internal processes.
The broader objective, sources say, is to reinforce trust and transparency within the organisation. The bank is looking to address the concerns constructively while ensuring that governance standards remain robust and aligned with best practices.
HDFC Bank had come into spotlight after former chairman Atanu Chakraborty cited personal values and ethics in his resignation letter. The lender, however, has maintained that bank was not aware about exact reasons for exit of Atanu Chakraborty.
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