India’s largest lender, HDFC Bank, faced significant selling pressure globally as its American Depositary Receipts (ADR) dropped by 8% to $26.42. In the domestic market, the bank’s shares tumbled by 8.66% to an intraday low of Rs 770, following the resignation of Atanu Chakraborty, the part-time Chairman and Independent Director. Chakraborty’s resignation was effective immediately, leading to the appointment of Keki Mistry as the interim part-time Chairman approved by the Reserve Bank of India.
The decline in HDFC Bank’s equities was influenced by Chakraborty’s departure, who expressed concerns over certain internal developments within the bank in his resignation letter. Despite the decline in market capitalization by Rs 61,715 crore over the past week, Chakraborty clarified that his resignation was not due to any malpractices within the organization. He emphasized that his decision to resign was solely based on ideological differences and not linked to any wrongdoing at the bank.
At 9:44 am, HDFC Bank’s market capitalization on the BSE was approximately Rs 12,36,130 crore. Chakraborty’s exit from the bank’s board, citing a misalignment of personal values and ethics with certain practices within the organization, has led to uncertainties in the market. However, Mistry reassured that there were no significant issues following Chakraborty’s resignation, emphasizing that the bank’s operations remain unaffected by the change in leadership.
