HDFC Bank shares sink over 5 per cent after chairman quits
Shares of HDFC Bank dived over 5 per cent on Thursday after Atanu Chakraborty resigned as chairman of the country’s second biggest lender, citing ethical concerns.The blue-chip stock tumbled 5.13 per cent to settle at INR 799.70 on the BSE, trimming some of its sharp early losses. During the day, it tanked 8.41 per cent to INR 772 — its 52-week low.
At the NSE, the stock dropped 5.31 per cent to close at INR 798.20. Intra-day, it dived 8.66 per cent to hit the 52-week low of INR 770.The company’s market valuation eroded by INR 65,946.08 crore to INR 12,30,896.85 crore following the sharp decline in the stock.
In the equity market, the 30-share BSE Sensex tanked 2,496.89 points or 3.26 per cent — its biggest single-day plunge since June 2024 — to settle at 74,207.24. The 50-share NSE Nifty tumbled 775.65 points or 3.26 per cent to end at 23,002.15.This is the first time that the part-time chairman of HDFC Bank left mid-way, raising concerns over its functioning.
“Certain happenings and practices within the bank, that I have observed over the last two years are not in congruence 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, Remuneration Committee, HK Bhanwala, Chakraborty said that “There are no other material reasons for my resignation other than those stated above.”
In a late evening filing, HDFC Bank said Chakraborty has on March 18, 2026, tendered his resignation as the Part-time Chairman and Independent Director of the Bank with immediate effect.
The bank further said, “Whilst the resignation letter of Chakraborty was dated March 17, 2026, the same was received by the Bank on March 18, 2026, at 15:17 hours (IST).”
Further, the filing said, based on an application made by the bank, the Reserve Bank of India on March 18, 2026, has granted its approval for the appointment of Keki Mistry as an interim part-time chairman of the HDFC Bank with effect from March 19, 2026, for a period of 3 months.
Hours after the resignation of Chakraborty, citing ethical concerns, the Reserve Bank on Thursday said there were no material concerns on record as regards 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 periodical assessment, there are no material concerns on record as regards its conduct or governance,” the Reserve Bank of India (RBI) said in a statement.
