Mumbai: Shares of HDFC Bank fell more than 2 percent on Friday, continuing losses from the previous session. The stock dropped 2.36 percent to Rs 780.75 on the BSE and 2.19 percent to Rs 780.70 on the NSE. A day earlier, the shares had already fallen over 5 percent, showing strong selling pressure.
Sudden Resignation Triggers Concern
The fall in the share price comes after non-executive chairman Atanu Chakraborty resigned suddenly. He cited differences related to “values and ethics” as the reason for stepping down. His exit has surprised investors because no detailed explanation or specific issue was shared.
Management Calls Reason Unclear
The bank’s management said the reason given for resignation was unclear. According to them, Chakraborty did not provide any concrete examples despite being asked multiple times. This has created confusion in the market and raised questions among investors.
Interim Chairman Appointed
Following the resignation, Keki Mistry has been appointed as the interim chairman. He said there might have been some relationship issues between Chakraborty and the executive leadership. However, he added that there are no serious or “substantive” concerns behind the exit.
Governance Stability Assured
The bank has tried to reassure investors that its operations and governance remain stable. Mistry emphasised that the institution continues to function normally despite the leadership change. Still, the sudden exit of a part-time chairman mid-term is rare and has made investors cautious.
Rare Event Raises Questions
This is the first time that a part-time chairman has left HDFC Bank before completing the term. In his resignation letter dated March 17, Chakraborty stated that certain practices within the bank over the past two years did not match his personal values and ethics.
Disclaimer: This article is for informational purposes only and not investment advice. Stock market investments are subject to risks. Readers should consult financial advisors before making any investment decisions.
