Shares of HDFC Bank, India’s largest private lender, saw a decline in early trading as the bank appointed Rajiv Kumar, former Finance Secretary, as its new part-time Chairman for three years. The stock dropped by 0.62% to Rs 794 on the BSE around 9:45 am. Currently, it is trading at Rs 794.55, down by 0.56%.
The bank’s decision to name Rajiv Kumar as part-time chairman led to selling pressure, following a regulatory filing on Monday. Rajiv Kumar takes over from Atanu Chakraborty, who resigned earlier this year due to concerns over practices conflicting with his personal values.
After Atanu Chakraborty’s resignation, Keki Mistry was appointed interim part-time chairman to ensure continuity until a permanent appointment was finalized. Reports suggest that the bank’s Governance, Nomination, and Remuneration Committee did not discuss the reappointment of the bank’s CEO at its recent meeting.
HDFC Bank’s stock has reached a 52-week high of Rs 1,020.35 and a low of Rs 726.75 on the BSE. Over the past year, it has declined by more than 20% and about 20% in the last six months. Additionally, former HDFC Bank Chairman Atanu Chakraborty has criticized the legal review of his resignation, stating it focused on compliance issues rather than the broader concerns he raised about certain business practices.
