HDFC Bank Shares Crash 8% After Chairman Exit, Management Reassures Investors In 9 AM Call On Stability & Governance
· Free Press Journal
Mumbai: Shares of HDFC Bank fell sharply on Thursday, dropping nearly 8.4% during intraday trade. The fall came right after the resignation of part-time chairman Atanu Chakraborty, who raised concerns over certain ethical practices within the bank.
Visit aportal.club for more information.
The sudden decline also impacted the broader market, with Nifty 50 falling around 2.3%, where HDFC Bank was the biggest drag. However, the stock recovered slightly later and was trading around 5.15% lower by 10:15 AM.
Keki Mistry Takes Charge
Following the resignation, the bank appointed Keki Mistry as interim part-time chairman. He clarified that there is no power struggle within the bank.
He said that small differences of opinion within the board are normal and there is no major issue. He also confirmed that some board members have met officials from Reserve Bank of India.
HDFC Bank Chairman Atanu Chakraborty Resigns, Flags Ethical Concerns & Says Merger Benefits Yet To Fully MaterialiseManagement Reassures Investors
In the 9 AM concall, Mistry assured investors that the bank’s operations are running smoothly. He said there is no disruption in daily business and everything is functioning normally.
He also added that he would not have accepted the role if it went against his personal ethics. The board remains fully committed to maintaining investor trust and strong governance standards.
No Impact on CEO Reappointment
The management clarified that the reappointment of CEO Sashidhar Jagdishan will not be affected by this development.
Board members also said they were not fully aware of the specific concerns mentioned in Chakraborty’s resignation letter.
HDFC Bank Q3 Profit Up 12% To Rs 19,807 Crore, Non-Interest Income Drives GrowthKey Takeaways from Concall
The management highlighted that there are no operational issues in the bank and no warning or notice has been received from the RBI. They stressed that the bank maintains high transparency and governance standards.
They also said there is no internal conflict or power struggle, and while there may have been differences of opinion with the former chairman, there is no governance-related problem.
Strong Fundamentals Remain Intact
Despite the sharp fall, the bank’s fundamentals remain strong. Loan growth is expected to improve in FY27, while Return on Assets (RoA) may rise from 1.8% to 1.9%. CASA growth has improved from 6% to 10%, and core operating profit is expected to grow by 5–7%.
Net interest margins have remained stable at around 3.3%–3.5% over recent quarters.