MUMBAI: HDFC Bank’s newly appointed chairman Rajiv Kumar said the lender’s corporate governance remains fundamentally uncompromised, while asserting that the board will ensure control functions stay fully empowered with zero tolerance for unethical practices.Addressing leadership changes and external scrutiny after the exit of the previous chairman, Kumar rejected claims of systemic governance lapses and said oversight, transparency, and execution remain intact. His predecessor and former economic affairs secretary Atanu Chakraborty had quit earlier this year citing `values and ethics’. Kumar, who was earlier the finance secretary and chief election commissioner, said that “the bank’s ethos and internal control systems are strong. I assure you that this will be further strengthened and empowered”.He said that after the resignation, the bank appointed external legal counsel under the supervision of independent directors to examine the allegations, with findings disclosed to stock exchanges on June 26, 2026. “Let me reiterate, on my behalf and on behalf of the Board, that the bank is fundamentally strong, with a pristine balance sheet. There are no governance related concerns at the systemic level,” he said.Kumar described governance risks as isolated and manageable events rather than structural failures, and said existing processes are designed to detect and address such issues. “Strong institutions are defined by how good the policy and processes are, across their operating and governance domains.“The process should identify issues, investigate them, act upon them, disclose them where required and hold everyone involved accountable. This process is what allows institutions to become trustworthy as it ensures that any potential cause for concern that arises can be addressed on a case to basis and systemic improvements introduced in a wholesome manner to plug gaps to prevent recurrence,” he said.He added that the bank has demonstrated the presence of control systems and oversight at committee levels to identify deviations, if any. “The Board will ensure that control functions remain fully empowered to have zero tolerance towards any unethical practice, which will be dealt with speed and firmness on a case-to-case basis,” he said.On operations, Kumar said the bank faces balance sheet adjustments after its merger with HDFC, which have affected net interest margin and CASA ratio. He said the lender aims to improve these metrics over the next two to three years by increasing deposit market share and expanding consumption-led lending.
