HDFC Bank asks three senior executives to leave over mis-selling concerns
Mumbai, Mar 20, 2026
Move linked to alleged mis-selling of Credit Suisse AT1 bonds to NRIs; comes days after chairman Atanu Chakraborty's sudden resignation
HDFC Bank – the largest private sector lender of the country – has asked three of its executives to leave due to mis-selling concerns, sources told Business Standard. This comes after its part-time chairman Atanu Chakraborty’s sudden resignation on Wednesday.
The names of three executives could not be immediately confirmed, but reports suggest, the head of a branch banking, an executive vice-president, and a senior vice-president are the ones who have been asked to leave.
An email sent to HDFC Bank did not elicit a response till the time of going to press.
The decision to ask the executives to leave is reportedly linked to the mis-selling of additional tier-I (AT-I) bonds of Credit Suisse to retail customers at the Dubai branch, where they were marketed to non-resident Indians (NRIs) as fixed-maturity bonds. These bonds were written off after Credit Suisse went bankrupt and was taken over by another banking giant, UBS.
When asked on Thursday, if Chakraborty’s exit was in relation to the AT-I bond issue, Sashidhar Jagdishan, MD&CEO, of the bank said, “There are several such matters which happen periodically, not just now, but has been happening over the last 32 years…”
“Every matter is considered from an accountability perspective. It is nothing new. Every issue is taken up and we have an established policy and a standard of operating process, which is then dealt with from an action perspective, rather independently, also providing appellate authority for the aggrieved. So it is not necessary that decisions will always be accepted. There will be times where people will agree to disagree. And I think that is the power and the positivity of a good governance,” he emphasised while adding this may be the reason for Chakraborty to quit.
Chakraborty, a former bureaucrat, resigned with immediate effect citing certain happenings and practices within the bank over last two years, which were not in congruence with his personal ‘Values and Ethics’.
During a media call, M D Ranganath, independent director on HDFC Bank board said, “…this matter, as well as any other matter, there is a very established process in the bank where independent functions like internal audit or vigilance department independently investigate any of these matters that come to our light. And there is a detailed process of how to kind of what disciplinary actions that we need to take depending upon the severity of the omissions. So even in this case, the necessary investigation as well as the disciplinary actions have been closed and it has been very conclusively concluded. There is nothing pending on that.” Ranganath is the chairman of the audit committee of the bank.
The exit of Chakraborty, and that of these three senior executives follows a series of high profile exits at the bank, including Rahul Shyam Shukla, who resigned citing personal reasons (effective October 1, 2025), Bhavesh Zaveri, executive director at the bank, who did not seek reappointment as he plans to explore opportunities outside the banking sector. Zaveri is set to retire on April 18. Vinay Razdan, who was the chief human resources officer (CHRO) also resigned from his position (June 2025).
[The Business Standard]
