By BullScreen Editorial Team 
HDFC Bank Shares Drop 5% After Chairman Quits Citing Ethics Concerns
Shares of HDFC Bank fell nearly 5% on Thursday after its part-time chairman Atanu Chakraborty stepped down, citing concerns over “values and ethics” within the bank.
The resignation, disclosed after market hours on Wednesday, unsettled investors despite the bank’s strong financial standing. In his letter dated March 17, Chakraborty said certain practices observed over the past two years were not aligned with his personal principles, though he did not provide specific details.
Addressing investors, interim chairman Keki Mistry said Chakraborty had not shared any evidence with the board to substantiate the claims. He emphasized that the management remains cohesive and operations continue as usual.
The development comes at a time when foreign institutional investors hold over 47% stake in the country’s largest private lender, including major global funds such as Singapore’s sovereign investor and Norway’s Government Pension Fund Global.
The Reserve Bank of India sought to reassure markets, stating that HDFC Bank maintains “sound financials” and is governed by a professional board. The regulator added that its periodic assessments have not flagged any material concerns regarding governance or conduct.
Market experts, however, remain cautious. Deven Choksey of DRChoksey FinServ described the leadership change as a “firefighting move” and warned of continued selling pressure in the near term, advising investors to avoid aggressive buying until clarity emerges.
With a market capitalization of over ₹13 trillion, higher than State Bank of India, HDFC Bank’s governance credibility remains critical to sustaining investor confidence amid the current uncertainty.