HDFC Bank Chairman Rajiv Kumar has asserted that the lender’s corporate governance framework remains strong and that there are no systemic issues affecting the bank.
His remarks come amid increased scrutiny following the resignation of former chairman Atanu Chakraborty, who stepped down earlier this year citing “values and ethics”.
Kumar, a former finance secretary and chief election commissioner, said the bank’s internal systems, oversight mechanisms and transparency standards remain intact.
He assured stakeholders that the board would continue strengthening governance practices and maintain zero tolerance towards unethical conduct.
External Review Found No Systemic Governance Concerns
Addressing concerns after the leadership transition, Kumar said the bank had appointed external legal counsel under the supervision of independent directors to examine allegations raised after the previous chairman’s exit. The findings of the review were later disclosed to stock exchanges on June 26, 2026.
Kumar said HDFC Bank continues to have a strong balance sheet and that governance concerns, if any, should be viewed as individual incidents rather than structural failures.
He emphasised that strong institutions are built on effective policies and processes that allow issues to be identified, investigated, corrected and disclosed appropriately.
According to him, the bank’s governance framework is designed to address concerns on a case-by-case basis while introducing improvements to prevent future occurrences.
Bank Focuses On Post-Merger Growth Strategy
On business performance, Kumar said HDFC Bank is currently managing adjustments following its merger with Housing Development Finance Corporation (HDFC).
The integration has affected certain balance sheet parameters, including net interest margin (NIM) and the current account savings account (CASA) ratio.
He said the bank aims to improve these metrics over the next two to three years by increasing its deposit market share and expanding consumption-focused lending.
Kumar added that the lender’s long-term growth strategy will focus on strengthening operational efficiency, maintaining asset quality and improving customer reach.
