HDFC Bank gets RBI nod to extend Keki Mistry's term as interim chairman by 3 months

HDFC Bank on Thursday said the Reserve Bank of India (RBI) has approved a three-month extension for Keki Mistry as the lender's interim part-time chairman.

In a regulatory filing, the country's largest private sector lender said the RBI has approved the extension of Mistry's tenure as interim part-time chairman till September 18, 2026, or until a regular part-time chairman is appointed, whichever is earlier.

Mistry was appointed interim part-time chairman with effect from March 19, 2026, for a period of three months following the resignation of Atanu Chakraborty as part-time chairman and independent director.

Chakraborty had stepped down citing concerns that certain practices he observed within the bank over the previous two years were not in line with his personal values and ethics.

According to a report by The Indian Express, an internal vigilance investigation at HDFC Bank examined payments of around ₹45 crore made to MSRDC during FY24 and FY25.

The report alleged that the payments were routed through the bank's marketing budget as sponsorship expenses linked to road safety awareness campaigns instead of being directly credited as interest on deposits.

The newspaper also reported that the bank's Audit Committee had ordered a formal internal vigilance probe after an audit flagged the payments and rated the marketing department's performance as "unsatisfactory".

The report further alleged that the arrangement was linked to a commitment to provide MSRDC a return of 6.01% on deposits, higher than prevailing savings account rates.

HDFC Bank has denied any wrongdoing.

"The Bank has robust internal oversight, audit and control processes and systems. All issues are dealt with in accordance with the Bank's established norms, and full process is always followed before final determination post any internal review," the bank had said in a statement quoted by CNBC-TV18.

"We strongly reject any assumptions of wrongdoing or culpability based on selective material," it had added.