HDFC Bank shares crack 9%, investors lose Rs 1.03 lakh crore as Atanu Chakraborty resigns

Shares of HDFC Bank Ltd settled nearly 9 per cent down on Thursday following the sudden resignation of Atanu Chakraborty as the non-executive chairman of India's largest private lender. The bank announced his departure late on Wednesday through an exchange filing, citing differences with the board. However, the lender made a partial recovery.

HDFC Bank later clarified that Chakraborty's resignation letter was dated March 17 and received on March18 . The Reserve Bank of India (RBI) has approved the appointment of Keki Mistry as the part-time chairman of HDFC Bank for a period of three months. HDFC Bank is hosting its concall on Thursday from 9 am onwards.

Shares of HDFC Bank opened at Rs 770 apeice, falling 8.66 per cent for the day, hitting its new 52-week low. The stock had settled at Rs 843.05 on Wednesday. Investors lost Rs 1.03 lakh crore as the total market capitalization of HDFC Bank cracked to Rs 11.94 crore from Rs 12.97 lakh crore on Wednesday.

To recall, more than 35.40 lakh retail investors owned 160.78 crore equity shares, or 12.06 per cent stake in HDFC Bank as of December 31, 2025. FIIs owned 635.37 crore equity shares or 47.67 per cent stake, while domestic institutions including mutual funds and insurance companies held 495.67 crore equity shares, or 37.19 per cent stake in India's largest private lender.

In its concall, HDFC Bank management reassured that there are no major issues at bank but personal difference of opinion is possible  The lender emphasized to have strongest form of governance and ethics. Reacting to the development, the US-listed shares of HDFC Bank or ADRs, fell over 7 per cent overnight.

HDFC Bank added that Atanu Chakraborty’s exit from HDFC Bank is not linked to any regulatory concerns, but stems from prolonged ethical differences over certain practices at the bank. No RBI or regulatory issue is behind this resignation but the issues had persisted over time.

Overseas brokerage firm JPMorgan has maintained a 'neutral' rating on HDFC Bank with a price target of Rs 1,090. It said that Chakraborty's exit adds to the macro headwinds, along with a hit to sentiment with elevated volatility in the near-term and the stock may remain weak after the announcement.

"Certain happenings and practices within the bank, that I have observed over the last two years, are not in congruence with my personal Values and Ethics. This is the basis of my aforementioned decision. I confirm that there are no other material reasons for my resignation other than those stated above," Atanu Chakraborty stated in his resignation letter.

"It has been a privilege to contribute to the growth and governance of the Bank. I observed a great amount of energy and verve in the middle & junior levels of the organization, that should form the core of a reimaged organization. I also place on record my sincere appreciation for Secretarial, Compliance, Audit and Group oversight functions," his letter read further.

Investors shall be closely watching leadership changes and their impact on the stock. Atanu Chakraborty, previously served as India’s economic affairs secretary, expressed his thanks to the independent directors on the board, but notably did not mention the bank’s top management or executive directors in his remarks.

The current executive directors on HDFC Bank’s board include CEO and Managing Director Sashidar Jagdishan, Deputy Managing Director Kaizad Bharucha, and executive director Bhavesh Zaveri. Chakraborty’s statement did not acknowledge their contributions.