New Delhi, March 19 HDFC Bank's shares plunged by over 5 per cent on Thursday after Atanu Chakraborty resigned as chairman of the country's second-largest lender, citing ethical concerns.
The blue-chip stock fell by 5.13 per cent to close at Rs 799.70 on the BSE, recovering some of its sharp early losses. During the day, it dropped by 8.41 per cent to Rs 772 – its lowest level in the past 52 weeks.
At the NSE, the stock declined by 5.31 per cent to close at Rs 798.20. Intra-day, it fell by 8.66 per cent, hitting its 52-week low of Rs 770.
The company's market valuation eroded by Rs 65,946.08 crore to Rs 12,30,896.85 crore following the sharp decline in the stock.
In the equity market, the 30-share BSE Sensex plunged by 2,496.89 points or 3.26 per cent – its biggest single-day fall since June 2024 – to close at 74,207.24. The 50-share NSE Nifty tumbled by 775.65 points or 3.26 per cent, ending at 23,002.15.
This is the first time that the part-time chairman of HDFC Bank has resigned mid-term, raising concerns about its functioning.
"Certain events and practices within the bank, which I have observed over the last two years, are not in line with my personal values and ethics. This is the basis of my aforementioned decision," he said in his resignation letter dated March 17.
In a letter addressed to the Chairman of the Governance, Nomination, and Remuneration Committee, H K Bhanwala, Chakraborty said, "There are no other material reasons for my resignation other than those stated above."
In a late evening filing, HDFC Bank said that Chakraborty has tendered his resignation as the Part-time Chairman and Independent Director of the Bank, effective March 18, 2026.
The bank further said, "Although Chakraborty's resignation letter was dated March 17, 2026, it was received by the Bank on March 18, 2026, at 15:17 hours (IST)."
Further, the filing stated that, based on an application made by the bank, the Reserve Bank of India has granted its approval for the appointment of Keki Mistry as an interim part-time chairman of HDFC Bank, effective from March 19, 2026, for a period of 3 months.
Hours after Chakraborty's resignation, citing ethical concerns, the Reserve Bank said on Thursday that there were no material concerns regarding the bank's conduct or governance.
"HDFC Bank is a Domestic Systemically Important Bank (D-SIB) with sound financials, a professionally run board, and a competent management team. Based on our periodic assessments, there are no material concerns regarding its conduct or governance," the Reserve Bank of India (RBI) said in a statement.