Recent reports have attributed Chakraborty’s resignation to a power struggle with the CEO, Sashidhar Jagdishan. Leading up to the CEO’s impending reappointment, which was backed by the board but opposed by Chakraborty, insiders claim that the tussle reportedly reached its tipping point. While mis-selling of perpetual additional tier-1 bonds, as alleged by the Dubai Financial Services Authority, and Jagdishan’s alleged involvement in the Lilavati Trust scandal may have played a role, their financial impact on the bank is expected to be limited. The disagreement reportedly spans more than compliance, with leadership styles, strategy, and control adding to the rift at the top.
