HDFC Bank CEO: Confronting Ethics Crisis Head-On

HDFC Bank's MD & CEO, Sashidhar Jagdishan, has announced that the bank will hold multiple board meetings over the next month to thoroughly review past decisions. This initiative follows the recent resignation of Atanu Chakraborty as chairman, citing "values and ethics." Jagdishan stated that the bank intends to examine all decisions taken over time, evaluate action points, and identify areas for improvement.

The bank plans to address all issues, whether existing or new, with complete transparency. Jagdishan emphasized a commitment to fixing any identified gaps and tightening controls. He asserted that while operational issues would lead to design and control improvements, any conduct issues would be met with ruthless action.

Regarding Chakraborty's resignation, Jagdishan noted that no ethics or values issues were raised during his tenure. He mentioned that Chakraborty's statement about routine resignation and no wrongdoing appeared to be a retraction after the initial concerns were raised. The bank is exploring legal remedies concerning the financial losses incurred by shareholders due to this episode.

In other developments, the bank is also addressing operational and documentation lapses in its Dubai operations, which led to losses on Credit Suisse AT1 bonds. Jagdishan clarified that these were technical issues, not fraud. He also expressed confidence in the merger with HDFC, viewing it as a significant opportunity for growth, particularly in the housing loan sector.