The stock of HDFC Bank on Friday shed over 2.5 percent of its value compared to the previous close. This is the second day for the stock to trade in the red after its part-time chairman, Atanu Chakraborty, resigned citing ethical issues with the functioning of India’s largest private sector lender.
The stock, which had plunged about 9 percent during Thursday’s trade, opened lower on Friday at Rs 788 compared to the previous close of Rs 799.70 apiece. The stock further fell to Rs 778.80 during the early trading hours, which is over 2.6 percent lower than its previous close.
However, it recovered some of the losses to trade at around Rs 780 apiece, which was still a discount of about 2.3 percent.
The decline has come even as the bank and the Reserve Bank of India tried to address investors’ and customers’ concerns about governance issues in the bank.
Keki Mistry, HDFC’s former vice chairman and chief executive officer, has been appointed as the interim chairman following the resignation of Chakraborty.
Mistry said there were no “substantive” concerns behind the resignation. However, he added that there could have been “relationship issues” between Chakraborty and the executive leadership.
In a rare instance, even the country’s banking regulator, RBI, issued a statement to quell governance concerns in the bank. It said that there were “no material concerns on record” with regard to HDFC Bank’s conduct or governance.
The resignation of Chakraborty as HDFC Bank’s part-time chairman and independent director has sent shock waves in the banking and investor circles, as the former IAS (Indian Administrative Service) officer cited ethical concerns for his decision.
However, the bank has appointed Keki Mistry as interim part-time chairman with effect from March 19, 2026, for a period of three months. Mistry has had a long association with HDFC Bank. Before the merger of HDFC with HDFC Bank in 2023, Mistry was the former’s vice chairman and chief executive officer.
