Rare but not unusual for RBI to come out in support of a troubled bank | Finance News – Business Standard

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RBI’s swift support for HDFC Bank after chairman’s exit aims to calm depositor and investor sentiment, reflecting a rare but not unprecedented regulatory intervention

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Reserve Bank of India (Photo: Reuters)

Manojit Saha Mumbai

2 min read Last Updated : Mar 19 2026 | 9:20 PM IST

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The Reserve Bank of India’s decision to come out quickly and strongly in support of HDFC Bank on Thursday, in the wake of the sudden resignation of the part-time chairman late on Wednesday evening, was aimed at calming depositors’ and investors’ nerves — a move that is rare but not unusual.

Typically, the central bank does not comment on any individual organisation that it regulates. 

HDFC Bank is ‘too big to fail’, officially known as a domestic systemically important bank (D-SIB). Only two other banks in the country are D-SIBs — the country’s largest lender, State Bank of India, and the second-largest private sector lender, ICICI Bank. 

Topics : Reserve Bank of India RBI HDFC Bank banking regulation