Shares of HDFC Bank fell 2.41 per cent on Friday, extending losses from the previous session, after the sudden resignation of non-executive chairman Atanu Chakraborty unsettled investor sentiment. The stock ended the day as the top loser on the 30-share BSE Sensex, even as the benchmark index rebounded 325.72 points to close at 74532.96.
The lender’s market capitalisation has eroded by ₹95,575.65 crore over the past two trading sessions, underscoring the sharp reaction from investors to the unexpected leadership change. Chakraborty’s exit, reportedly over differences related to “values and ethics”, caught both the board and market participants off guard.
Analysts noted that the development has weighed on sentiments at a time when broader markets are already grappling with macroeconomic uncertainties. However, reassurances from the Reserve Bank of India (RBI) regarding the bank’s governance standards and balance sheet strength, along with swift action by the board, have helped contain concerns to some extent.
Keki Mistry, a long-time veteran of the HDFC group who has been appointed interim chairman, has assured that the bank’s operations and internal controls remain stable.
Brokerages echoed a cautiously optimistic stance. Motilal Oswal Financial Services said that while the episode has dampened near-term sentiment, the interim leadership transition and regulatory backing provide comfort on operational continuity.
The brokerage added that clarity on the appointment of a new chairman and the proposed extension of CEO Sashidhar Jagdishan’s term beyond October 2026 will be key triggers for restoring investor confidence. Improved operating performance over the coming year will also be critical for the stock’s trajectory.
Global brokerage Jefferies similarly stated that interactions with the bank’s management and board suggest that any issues are “minor” and that corporate governance remains intact.
Separately, a Moneycontrol report indicated that the bank has asked three senior executives to exit over alleged mis-selling of Credit Suisse’s Additional Tier 1 bonds. The Dubai Financial Services Authority had barred the bank from onboarding new customers in the region following lapses in the sales process of these high-risk instruments.