HDFC Bank board mulls 90-day extension for interim chairman
What's the story
HDFC Bank's board is considering a 90-day extension for Keki Mistry as its interim chairman, according to Moneycontrol. The move comes as the bank has yet to find a successor for Atanu Chakravarty, who resigned unexpectedly in late March. Mistry's current term ends on June 18, and an extension would push it further into this year.
Succession search
Formal search for new chairman yet to begin
The board is yet to formally start the search for a new chairman, although it may have been discussed at a recent nomination and remuneration committee meeting. "The board might approach the RBI on this matter soon, once a unanimous decision has been taken," one of the sources told Moneycontrol. Mistry was appointed interim chairman on March 19 after Chakravarty's exit.
Leadership change
Chakravarty's resignation letter cited 'fundamental incongruence'
Chakravarty, a former bureaucrat, had stepped down as chairman citing a "fundamental incongruence between his personal values/ethics and the bank's internal practices over the past two years." He had sent his resignation letter to the nomination and remuneration committee (NRC) on March 17. Mistry was appointed as interim chairman two days later.
Uncertain tenure
Mistry has prior commitments
While the board is considering extending Mistry's term, it's unlikely that he would continue beyond the extended period. "Mistry has a few prior commitments, and he can only continue as an interim chairman for a limited duration. He might also not want to be a chairman for a longer period, though he could continue on the board as a non-executive member," another source told Moneycontrol.
Career path
Mistry's background and bank's situation
Mistry joined the HDFC Bank board on June 30, 2023, as a non-executive director after the merger of HDFC Limited with HDFC Bank. Prior to this merger, he was vice-chairman and CEO of HDFC Limited. The board's recommendation for extending Mistry's tenure comes amid the absence of a clear candidate for chairman at India's largest private sector bank.