Mumbai: HDFC Bank will hold multiple board meetings over the next month to review decisions taken in recent years and not hide anything after chairman Atanu Chakraborty’s resignation last week raised corporate governance issues, managing director and CEO Sashidhar Jagdishan said..
“We will take stock of past matters and address all issues—existing or new—without hiding anything,’’ Jagdishan said in an interview with ET. “If these are operational issues, we will tighten design and controls.
Also Read: If you want to have good governance, you cannot be in a yes-sir mode, says Sashidhar Jagdishan
If these are conduct issues, we will be ruthless.” He said no clarity has emerged on what triggered Chakraborty’s exit after five and a half years on the board. “This is like fighting a ghost,” he said. “We had never anticipated this.” Asked if the bank will seek legal remedy for reputational damage, he said, “This event has caused a lot of angst within the company, board, shareholders and more so, retail shareholders. We are engaged with one to examine all possibilities. The company has a certain process and that will take its course.”
Also Read: HDFC Bank - What exactly was it? Atanu Chakrabarty's shock exit baffles global investors
Jagdishan said the chairman, despite writing about “ethics and values,” did not specify anything. “If you have concerns, put them there and we will address them collectively. He said, ‘I don’t have any to share.’ We then said, ‘If you don’t have any to share, please remove the lines.’ He was steadfast and refused to budge.’’ A day later, the chairman retracted his position on a news channel. Jagdishan said he’s willing to stay on for a third term.
“We will take stock of past matters and address all issues—existing or new—without hiding anything,’’ Jagdishan said in an interview with ET. “If these are operational issues, we will tighten design and controls.
Also Read: If you want to have good governance, you cannot be in a yes-sir mode, says Sashidhar Jagdishan
If these are conduct issues, we will be ruthless.” He said no clarity has emerged on what triggered Chakraborty’s exit after five and a half years on the board. “This is like fighting a ghost,” he said. “We had never anticipated this.” Asked if the bank will seek legal remedy for reputational damage, he said, “This event has caused a lot of angst within the company, board, shareholders and more so, retail shareholders. We are engaged with one to examine all possibilities. The company has a certain process and that will take its course.”
Also Read: HDFC Bank - What exactly was it? Atanu Chakrabarty's shock exit baffles global investors
Jagdishan said the chairman, despite writing about “ethics and values,” did not specify anything. “If you have concerns, put them there and we will address them collectively. He said, ‘I don’t have any to share.’ We then said, ‘If you don’t have any to share, please remove the lines.’ He was steadfast and refused to budge.’’ A day later, the chairman retracted his position on a news channel. Jagdishan said he’s willing to stay on for a third term.
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