HDFC Bank Stocks Plummet Amid Ethics-Driven Resignation

Shares of HDFC Bank sharply declined by nearly 12% over three days following the abrupt resignation of its non-executive chairman, Atanu Chakraborty, citing values and ethics as reasons. The bank reassured about its stability despite internal concerns and leadership changes involving interim chairman Keki Mistry.

Shares of HDFC Bank have witnessed a significant downturn, dropping nearly 12% over three days after the surprising resignation of its non-executive chairman, Atanu Chakraborty. The chairman cited differences concerning 'values and ethics.' On Monday, the stock plummeted 4.70%, closing at Rs 743.75 on the BSE, marking a 52-week low during intraday trading.

The market valuation of HDFC Bank has nosedived by Rs 1,52,064.22 crore following the stock's 11.76% decline, positioning the firm's worth at Rs 11,44,778.71 crore. Keki Mistry, a seasoned HDFC Bank Group veteran, took over as interim chairman. He acknowledged possible 'relationship issues' between Chakraborty and the executive team but found no significant concerns behind Chakraborty's departure.

This mid-way resignation by a part-time HDFC Bank chairman is unprecedented and raises questions about the bank's internal operations. Chakraborty's resignation letter pointed to incongruency with his personal values and ethics as the primary reason, with no additional material causes indicated, despite sustained assurance from the bank regarding its governance stability.

(With inputs from agencies.)