The total compensation of former HDFC Bank chairman, Atanu Chakrabortty, increased by 3.53 percent, reaching 1.07 crore rupees in the 2026 fiscal year, according to data published by the country's largest private lender on Saturday.
Compensation Details
Chakrabortty, who was previously a government bureaucrat, left his position, raising questions about ethics and governance at the end of the fiscal year. For the 2026 fiscal year, he received 107,25,269 rupees in fees for meetings and remuneration, as stated in the bank's annual report.
This amount exceeded the 103,58,871 rupees he received in the previous fiscal year. The annual report for the 2026 fiscal year specifies that as part-time chairman and independent director, he was entitled to a fixed remuneration of 50 lakh rupees for the 2026 fiscal year, which was approved by the Reserve Bank of India (RBI).
Departure and Payment Terms
The report noted that since Chakrabortty resigned from his position as part-time chairman and independent director on March 18, 2026, the fixed remuneration was paid to him proportionally. Additionally, he was paid fees for attending Board of Directors and Committee meetings, and provided with a vehicle for official and personal use until the date of his cessation of duties, i.e., until March 18, 2026.
According to the report, he attended all 17 board meetings held before his departure as part-time chairman of the bank.
Governance Issues and Investigation
Sashidhar Jagdishan, CEO and Managing Director of DFC Bank, stated on Saturday that the sudden departure of part-time chairman Atanu Chakrabortty was a complex event and raised questions regarding corporate governance standards at the bank. Chakrabortty resigned as part-time chairman of the country's largest private lender on March 18, citing ethical concerns, more than a year before the end of his term.
This is the first instance of an HDFC Bank part-time chairman leaving early, which has caused concern about the functioning of the bank. Jagdishan noted in the annual report that 'by the end of Fiscal Year 2025-26, the bank faced a complex event—the resignation of Atanu Chakrabortty, part-time chairman and independent director of the bank, on March 18, 2026.'
He added that the statement contained in Chakrabortty's resignation letter raised questions about governance standards. To strengthen the bank's robust governance standards, the board of directors made a preemptive decision to engage external law firms to investigate the statement made by Chakrabortty in his resignation letter. Since the bank's ADRs are listed on the NYSE, the board deemed it prudent to engage both domestic and international law firms for this review.
The bank disclosed the findings of the external law firms on June 26, 2026, which essentially showed that Chakrabortty's claims in his resignation letter and their consequences were not substantiated by the reviewed documents and witness interviews.