By BullScreen Editorial Team 
Shares of HDFC Bank extended losses for a second straight session, falling another 2% on Friday to Rs 781 on the BSE, taking the two-day decline to about 7.5%. The continued weakness follows a similar drop in the bank’s American Depositary Receipts (ADRs) listed on the New York Stock Exchange, which also slipped 2%, signalling persistent investor caution.
The sharp correction comes after Thursday’s 5% fall that briefly erased nearly Rs 1 lakh crore in market capitalisation. The trigger was the sudden resignation of former chairman Atanu Chakraborty, who cited concerns over certain “happenings and practices” that did not align with his personal values.
The bank’s management has moved quickly to reassure investors. CEO Sashidhar Jagdishan said the board had urged Chakraborty to reconsider and clarify his concerns, but he declined. The lender appointed Keki Mistry as interim chairman with approval from the Reserve Bank of India and held a conference call to address investor queries.
Mistry dismissed concerns of internal conflict, stating there was no power struggle or governance issue within the board. He emphasised that the leadership remains aligned and reiterated the bank’s strong ethical standards.
Despite the market reaction, analysts are not overly concerned. Market expert Deven Choksey described the correction as pushing the stock into a “deep value” zone, though he noted valuations may now include a governance discount.
Ishan Tanna said the development appears tactical rather than structural, viewing the decline as a potential buy-on-dips opportunity. He added that management commentary suggests the issue stems from differences in value systems rather than regulatory or compliance concerns.
For now, investors remain cautious, but the bank’s fundamentals and long-term track record continue to offer some comfort amid the uncertainty.