Jefferies Exits HDFC Bank, Cuts India Exposure After Chairman Resignation
New Delhi, March 27: Global brokerage Jefferies has exited its holdings in HDFC Bank and trimmed its exposure to India across key portfolios following the resignation of the bank’s part-time chairman, Atanu Chakraborty.
In its latest “Greed & Fear” report, Jefferies strategist Chris Woods said the firm has removed HDFC Bank from its Asia ex-Japan long-only equity portfolio, global long-only equity portfolio, and international long-only equity portfolio (excluding the US). No specific reason was cited for the move.
The brokerage has replaced HDFC Bank with HSBC, assigning it a 4% weighting across these portfolios. This shift has also led to a slight reduction in India’s overall allocation.
Jefferies has further rebalanced its Asia Pacific ex-Japan relative-return portfolio, cutting exposure to India and Australia by two percentage points each, while increasing Taiwan’s allocation by four percentage points.
Currently, India’s weight in Jefferies’ Asia Pacific ex-Japan portfolio stands at 13%, marginally higher than the MSCI benchmark.
The portfolio reshuffle comes in the wake of developments at HDFC Bank. On March 18, the lender disclosed that its part-time chairman, Atanu Chakraborty, had stepped down, citing differences over “values and ethics.” Following his resignation, Keki Mistry was appointed as interim part-time chairman.
The bank has also reportedly engaged law firms to review the circumstances surrounding Chakraborty’s exit. In his resignation letter, he mentioned that certain practices within the bank were “not in congruence” with his personal values, without providing further details.
Market analysts have raised concerns over investor sentiment. According to experts, even in the absence of confirmed misconduct, such developments could increase governance-related risk perception for the stock.
Reports indicate that the Reserve Bank of India (RBI) may also be reviewing the situation.
Shares of HDFC Bank fell as much as 3% to ₹758 on the BSE during intraday trading. The stock has declined करीब 14% over the past month, reflecting investor caution amid recent developments.
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