The resignation of Atanu Chakraborty as part-time chairman of HDFC Bank triggered a significant market reaction, with shares sliding more than 4% on Thursday morning. Trading at 802 rupees after a 4.80% or 40-rupee drop by 11:16 AM, the stock underscored investor jitters over the abrupt leadership change at India’s top private bank.
Chakraborty, an independent director since 2021, stepped down effective March 18, citing a mismatch between his ethical standards and certain internal happenings over the past two years. His letter to the board was candid: practices he witnessed did not sit well with his principles, though he stressed this was the sole reason for his departure.
Speaking exclusively to NDTV Profit, Chakraborty dismissed any notions of scandal. “There’s no irregularity or governance lapse here. It boils down to a difference in perspectives and values,” he said, reassuring stakeholders that his exit was ideological, not indicative of deeper problems.
The RBI swiftly greenlit Kekki Mistry’s appointment as interim chairman for a three-month stint from March 19, a move aimed at steadying the ship. Mistry commented that the transition poses no substantial hurdles for the bank.
HDFC Bank’s challenges extend beyond this episode. Post-merger with HDFC Ltd., the lender grapples with deposit mobilization, asset quality pressures, and regulatory scrutiny. Chakraborty’s tenure had been pivotal in navigating these waters, given his central banking background.
The stock’s plunge wiped out billions in market value, prompting questions about boardroom dynamics. While short-term volatility is expected, long-term investors may view this as a blip if the bank addresses underlying concerns transparently.
As Mumbai’s benchmark indices remained mixed, HDFC Bank’s underperformance highlighted sector-specific risks, with peers like ICICI and Kotak holding steadier.