HDFC Bank Shares Crash Nearly 9% After Chairman Atanu Chakraborty Resigns Over Ethical Concerns
Stock Hits 52-Week Low Amid Market Shock
New Delhi, March 19: HDFC Bank shares plunged sharply on Thursday morning after the sudden resignation of its Chairman Atanu Chakraborty, triggering heavy selling across exchanges.On the BSE, the blue-chip stock dropped 8.41% to Rs 772, marking its 52-week low. Similarly, on the NSE, the stock declined 8.66% to touch a 52-week low of Rs 770.
The sharp fall wiped out Rs 65,176.48 crore from the bank’s market valuation, bringing it down to Rs 12,31,666.45 crore. The stock emerged as the worst performer among Sensex and Nifty constituents during early trading.
Broader Market Also Under Pressure
The broader market reflected the negative sentiment, with the 30-share BSE Sensex falling 1,740.34 points to 74,949.92. The NSE Nifty declined 514.85 points to 23,262.95 in morning trade.First Mid-Term Exit Raises Governance Concerns
This marks the first instance of a mid-term resignation by a part-time chairman at HDFC Bank, raising concerns about the bank’s internal governance.In his resignation letter dated March 17, Chakraborty cited ethical reasons for stepping down.
“Certain events and practices within the bank, which I have observed over the past two years, are not in line with my personal values and ethics. This is the basis of my aforementioned decision,” he stated.
He further clarified in his letter addressed to H K Bhanwala, Chairman of the Governance, Nomination and Remuneration Committee, that there were no additional material reasons behind his decision.
Bank Confirms Resignation and Timeline
In a regulatory filing issued late evening, HDFC Bank confirmed that Chakraborty resigned as Part-time Chairman and Independent Director with immediate effect from March 18, 2026.The bank noted that although the resignation letter was dated March 17, it was officially received on March 18 at 15:17 IST.
RBI Approves Interim Chairman Appointment
Following the resignation, the Reserve Bank of India approved the appointment of Keki Mistry as interim part-time chairman.According to the bank’s filing, Mistry will assume the role effective March 19, 2026, for a period of three months.
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