RBI Backs Kekki Mistry’s Interim Role at HDFC Bank Amid Shares Dip

HDFC Bank moved quickly to appoint Kekki Mistry as interim chairman for three months, with RBI’s approval kicking in on March 19. The 71-year-old banking stalwart replaces Atanu Chakraborty, who stepped down due to ethical mismatches during his tenure from May 2021.

In a post-appointment analyst call, Mistry affirmed the decision’s alignment with his principles, noting he’d decline otherwise. Events accelerated post-resignation: board met, directors liaised with RBI, whose rapid nod signals unwavering confidence.

The regulator’s Thursday clarification was unequivocal—no operational or governance issues. HDFC remains well-capitalized, professionally governed, and capably managed as a vital D-SIB.

The bank stood by Chakraborty’s stated reasons, lauding his service without further commitments. Share prices nosedived, falling 8.40% to an intra-day low of 770 rupees, settling 3.77% lower at 811.50 on NSE by 1:22 PM.

As India’s private banking leader transitions leadership, RBI’s stamp of approval and Mistry’s value-driven approach bode well for continuity, even as equity markets grapple with the news. Watch for long-term governance enhancements.