HDFC Bank Faces Market Decline Following Chairman Departure

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HDFC Bank Shares Slide as ADRs Drop 8% After Chairman Resignation​

HDFC Bank Stock Falls Sharply in Domestic and Global Markets​

Mumbai, March 19: Shares of HDFC Bank witnessed heavy selling pressure on Thursday, both in domestic markets and overseas trading, following the resignation of its part-time Chairman Atanu Chakraborty.

The bank’s American Depositary Receipts (ADR) declined sharply by 8 percent to $26.42, down from the previous close of $28.71, reflecting weak global sentiment around the stock.

In the domestic market, HDFC Bank emerged as one of the worst-performing stocks. The share price dropped as much as 8.66 percent during intraday trade, hitting a low of Rs 770 compared to its previous close of Rs 843.

Chairman Resignation Triggers Market Reaction​

The sharp decline in HDFC Bank shares comes after Atanu Chakraborty stepped down from his role as part-time Chairman and Independent Director with immediate effect on March 18, as per an exchange filing.

Following his exit, the Reserve Bank of India approved the appointment of Keki Mistry as the interim part-time Chairman. His tenure will begin on March 19 and continue for a period of three months.

Mistry stated that there were no major concerns arising from Chakraborty’s departure.

Resignation Linked to Ideological Differences​

Chakraborty, who joined the bank’s board in 2021, cited concerns over certain developments within the organization over the past two years as the reason for his resignation.

In his resignation letter, he stated that these developments were not aligned with his personal values and ethics, prompting his decision to step down.

He further clarified that his resignation was not related to any wrongdoing at the bank. Speaking to NDTV Profit, Chakraborty said his decision was driven purely by ideological differences with the organization.

He reiterated that there were no malpractices within the bank and emphasized that his exit was based solely on differences in approach and values.

Market Capitalization Declines Significantly​

As of 9:44 am, HDFC Bank’s market capitalization stood at approximately Rs 12,36,130 crore on the BSE.

The bank has also seen a notable erosion in its market value over the past week, with a decline of Rs 61,715 crore. Among India’s most valued companies, HDFC Bank was one of the biggest losers during this period.