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Reserve Bank of India Governor Sanjay Malhotra on Wednesday, April 8, 2026 assured the markets that the central bank has not found any major concerns to governance or conduct at HDFC Bank, despite the sudden resignation of its part-time chairman Atanu Chakraborty.

Speaking at the post-monetary policy press conference, Malhotra said routine supervisory inspections and review of board meeting minutes have not revealed any major concerns about the country’s largest private sector bank. “Based on our general supervision, we have not found any major governance concerns at HDFC Bank,” he said. He further said that the banking system remains safe, stable and strong, and there are no systemic problems to profitability or financial strength.

The RBI Governor also clarified that the existing banking laws are effective and there is no need for major regulatory changes at the moment, although the central bank will continue to monitor the situation.

In response to the feedback received from banks, RBI plans to amend the guidelines for bank boards. The proposed changes are intended to help boards focus more on strategic policy decisions, risk governance and monitoring rather than routine operational matters. Draft instructions will be issued soon.

Further, to ease capital norms, RBI has proposed to remove the condition of inclusion of quarterly profits in capital linking NPA provision levels in the calculation of risk-weighted assets ratio (CRAR). This will give banks more flexibility in calculating capital adequacy.

Chakraborty had resigned in March 2026 citing differences over “values ​​and ethics”, leading to a sharp fall in HDFC Bank shares. The RBI had earlier issued a statement on March 19 confirming that there were no major concerns. Malhotra’s latest comments helped restore investor confidence, and the bank’s shares rose significantly on Wednesday.