HDFC extends Mistry tenure by 3 months

HDFC Bank said on Thursday that the Reserve Bank of India (RBI) has approved a three-month extension of Keki Mistry's tenure as interim part-time chairman, shunning market rumours over a new appointment.The RBI has extended Mistry's tenure until September 18, 2026, or until the appointment of a regular part-time chairman, whichever is earlier, the bank said in a stock exchange filing.

The approval follows an application made by the bank after Mistry's earlier appointment as interim chairman.Also Read: HDFC Bank board to review findings on Atanu Chakraborty's exit on June 18NDTV had reported that former RBI Deputy Governor Rajeshwar Rao was among the names being considered for HDFC's next chairman.Keki Mistry took the role as interim chairman after the abrupt resignation of Atanu Chakraborty.Chakraborty resigned in mid-March, citing certain practices at the country's most-valued lender that he said were not in line with his "personal values and ethics."Also Read: No merit in issues flagged by ex-chair of HDFC Bank: Law firmsChakraborty, a former bureaucrat who earlier served in the Department of Financial Services, joined HDFC Bank's board in May 2021.

During his tenure, he oversaw key developments, including the merger of HDFC Bank with mortgage lender HDFC, creating India's second-largest bank by assets.After Mistry's term gets over, the eventual appointment of a full-time part-time chairman is expected to remove a governance-related overhang that has weighed on investor sentiment in recent months.

The stock ended 1.7% higher at Rs 800.80 on Thursday. ...