HDFC Bank Shares Slide 8% After Atanu Chakraborty Steps Down as Chairman

HDFC Bank Shares Tumble Over 8% After Chairman Exit; Interim Replacement Named

Shares of HDFC Bank, India’s largest private sector lender, plunged as much as 8.4% to an intraday low of ₹772 on the BSE on Thursday, following a sudden leadership shake-up.

Part-time chairman and independent director Atanu Chakraborty has stepped down, with Keki Mistry appointed as interim part-time chairman, subject to approval from the Reserve Bank of India.

In his resignation letter, Chakraborty cited concerns over certain developments and practices within the bank over the past two years, stating they were not aligned with his personal values and ethics.

His tenure saw key milestones, including the merger of HDFC Ltd with the bank, creating a financial giant. However, he noted that the full benefits of the merger are yet to be realised. Chakraborty joined the board in May 2021 and has previously served as Secretary in the Finance Ministry and held key roles at global financial institutions.

The leadership change weighed on investor sentiment, with the bank’s US-listed ADRs falling over 7% overnight to $26.62.

Stock Under Pressure
HDFC Bank shares have remained under strain, declining about 8% in the past month, 13% over six months, and nearly 15% so far this year.

Q3 Performance Snapshot
Despite the recent fall, the bank reported an 11% year-on-year rise in standalone net profit for the December quarter at ₹18,654 crore, beating estimates.

Interest income rose marginally to ₹76,751 crore, while interest expenses declined nearly 3% to ₹44,136 crore. Net interest income (NII) increased 6.4% to ₹32,620 crore. The bank’s core net interest margin stood at 3.35% on total assets and 3.51% on interest-earning assets.