- Shares of HDFC Bank fell 4.82% after part-time chairman Atanu Chakraborty resigned.
- Chakraborty cited value and ethics concerns, not operational or material reasons, for quitting.
- The resignation followed reported differences with management and board members.
Shares of HDFC Bank Ltd. dipped in trade on Thursday after part-time chairman Atanu Chakraborty quit citing concerns over practices that he said were not aligned with his personal values and ethics.
Shares of HDFC Bank are down 4.79% at Rs 802.70 apiece at 10:30 am. The shares are currently in the bear territory, and have fallen 25% from its 52-week high of Rs 1,020.50, which was reached in October 2025.
The stock has dragged the Nifty by nearly 150 points at market open. The stock had also hit lower circuit at pre-open.
In his resignation note, Chakraborty stated that his decision was driven by issues related to principles rather than any operational or material factors. He clarified that there were “no other material reasons” behind his move. Sources told NDTV Profit his exit comes on the back of differences with other management and board members and were not linked to any regulatory concerns.
Keki Mistry, in the company's concall said that the board has accepted his resignation, and he adds that he wants to assure all stakeholders that there are no material concerns, nor were any specific operational issues highlighted.He also emphasised that the merged entity continues to realise its value, and the bank operates with strong governance standards supported by an experienced management team. With the RBI having approved my appointment, I reaffirm that our governance framework is built on transparency and institutional integrity.
Chakraborty was increasingly viewed as being out of sync with the top leadership, particularly on major strategic matters such as the proposed HDB Financial Services–MUFG transaction.
JPMorgan noted that the bank's stock may see weakness following the resignation, a trend that could be intensified by the already subdued macro environment shaped by global geopolitical uncertainties. While the resignation letter did not point to any specific operational lapses or misconduct, the abrupt exit has raised questions about possible internal disagreements, potentially increasing the governance risk premium attached to the stock. Analysts added that even the perception of misalignment can dampen investor confidence until the bank clearly outlines and executes stabilizing measures.
ALSO READ: 'Not Pointing Out Any Wrongdoing': Atanu Chakraborty Tells NDTV Profit After Resignation
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