HDFC Bank Stock Trades In Green For First Time After Chairman’s Resignation Over Ethical Concerns

After days of steep declines, the stock of HDFC Bank rose as much as 3.7 percent on the bourses on Tuesday.

The stock has been trading in the red since the resignation of the bank’s chairman, Atanu Chakraborty, due to “ethical” concerns about some unspecified practices at the bank.

The stock opened 3.2 percent higher on Tuesday at Rs 767.75 compared to its previous closing price of Rs 743.75. It jumped to Rs 772 during the trade, posting a rise of 3.7 percent.

During the later hours of the trade, the stock pared some gains to hover at around Rs 770 apiece, which was 3.6 percent higher than its previous close.

The strong show has come for the first time since Chakraborty’s resignation last week.

His resignation had sent shock waves in banking and investor circles, as the former IAS (Indian Administrative Service) officer cited ethical concerns for his decision.

However, India’s largest private sector lender has appointed Keki Mistry as an interim part-time chairman of the bank with effect from March 19, 2026, for a period of 3 months.

Even the RBI had clarified that there were no material governance issues with the bank.

Earlier to today’s rise, the stock of HDFC Bank had hit its 52-week low of Rs 740.95 apiece, falling overall 11 percent since the resignation.

In a related development, HDFC Bank has announced that it has appointed external law firms to examine Chakraborty’s resignation.

The bank said that having an external law firm for the examination would ensure a fair probe into the reasons behind Chakraborty’s sudden resignation.

According to experts, the current levels of the stock could be a good entry point for investors looking at long-term bets. They highlighted the bank’s repeated assurances and the RBI’s comments as indications that the governance issues may not be severe enough to impact the bank’s strong financials.