RBI Backs Mistry for 90 More Days as HDFC Bank Hunts Permanent Chairman

The Reserve Bank of India (RBI) has approved a 90-day extension for Keki Mistry's tenure as part-time chairman of HDFC Bank, allowing him to continue in the interim role beyond his scheduled end date of June 18. The decision ensures continuity in the governance of India's largest private sector lender as it moves closer to appointing a permanent chairman.

The extension comes at a crucial time, with HDFC Bank understood to be in the final stages of selecting a permanent chairman. According to people familiar with the matter, the bank is expected to submit its recommendation to the RBI shortly for regulatory approval, bringing an end to the temporary leadership arrangement introduced earlier this year.

Mistry assumed the role of interim part-time chairman in March 2026 following the unexpected resignation of former chairman Atanu Chakraborty. His appointment was intended to provide stability while the bank's board initiated the search for a long-term successor and maintained continuity in its governance processes.

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Chakraborty's resignation attracted significant attention across the banking sector after he cited concerns over practices that he said were not aligned with his personal values and ethics. In his resignation letter, he maintained that his decision was based on matters of principle and clarified that there were "no other material reasons" behind his departure, prompting greater scrutiny of the bank's governance framework.

Since the leadership change, the RBI has maintained close engagement with HDFC Bank's board. Senior officials from the central bank have reportedly been meeting board members every two to three weeks to review governance standards, board processes and succession planning. The regulator's oversight reflects the importance of ensuring stability and strong corporate governance at one of India's most significant financial institutions.

The 90-day extension gives HDFC Bank additional time to complete its chairman selection process without disrupting board-level leadership. Sources indicate that Mistry's appointment was always intended as a temporary measure, with the chairman's position expected to remain independent. The upcoming appointment of a permanent chairman will be closely watched by investors, regulators and the broader banking industry as the bank seeks to reinforce confidence in its governance and succession planning.

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