AIBEA writes to FM, seeks CBI probe after Atanu Chakraborty flags ‘ethical concerns’ in resignation

Atanu Chakraborty Resignation: A fresh controversy seems to be brewing around HDFC Bank after the resignation of its former part-time chairman and independent director Atanu Chakraborty.

The All India Bank Employees' Association (AIBEA) has written to Finance Minister Nirmala Sitharaman, asking for intervention and greater clarity on the circumstances surrounding his exit.

What stands out, according to the association, is the reason cited in the resignation letter. Chakraborty referred to certain “happenings and practices” that were not in line with his personal values and ethics. AIBEA said such a remark from an independent director is rare and cannot be overlooked.

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Systemic importance adds to concerns

The association has pointed out that HDFC Bank is classified as a Domestic Systemically Important Bank (D-SIB) by the Reserve Bank of India. That tag means any issue related to governance or risk management could have a wider bearing on the financial system.

It also highlighted the bank’s size to underline the point. The lender serves more than 120 million customers, operates over 9,600 branches and has a workforce of about 2,15,000. Its deposits are in excess of Rs 27 lakh crore, while total business is over Rs 53 lakh crore.

Call for clarity, not just reassurance

While the Reserve Bank of India has said that deposits in the bank are safe, AIBEA has argued that the issue goes beyond immediate safety concerns.

The association said the lack of details around the “practices” mentioned in the resignation letter could create uncertainty. Over time, it warned, such uncertainty has the potential to affect public confidence in the banking system.

It reiterated that private sector banks handle public money and must be open to scrutiny. In that context, it described the situation as one that warrants closer examination.

Demand for inquiry and disclosure

AIBEA has asked the government to carry out a comprehensive inquiry into the matter, including a review of governance standards, compliance systems and risk controls within the bank.

The association for banks has also asked that the findings should be made public, suggesting that transparency will be of crucial in order to maintain trust among depositors and other stakeholders.

The association has also advised for an independent probe involving agencies such as the CVC and CBI may be considered if needed. It has also recommended that Parliamentary Committees look into the issue, citing its broader implications.

Focus on depositor confidence

In its communication, AIBEA has stressed that the banking system rests on public trust. Any development that raises questions—especially in a large bank—needs to be addressed clearly and promptly.

It has urged Finance Minister Nirmala Sitharaman to step in to safeguard the interests of customers and depositors.

The association added that while the government may already be aware of the situation, it felt it was necessary to formally raise the issue.