HDFC Bank shares plunged over 10% in four consecutive trading sessions, leading to a significant drop in the bank’s market capitalisation. The stock fell to an intraday low of ₹756.30 on the National Stock Exchange (NSE), with the market value of the bank being reduced by ₹1.34 lakh crore to ₹11.63 lakh crore. The decline followed reports that the bank had asked three senior executives to resign over alleged involvement in the mis-selling of Credit Suisse’s Additional Tier 1 (AT1) bonds. The affected executives included Sampath Kumar, group head of branch banking; Harsh Gupta, executive vice president for Middle East, Africa, and NRI onshore business; and Payal Mandhyan, senior vice president. According to reports, HDFC Bank is investigating claims that its employees, particularly in its Dubai branch, mis-sold high-risk AT1 bonds. The development coincided with the abrupt resignation of the bank’s non-executive chairman, Atanu Chakraborty, who cited differences over “values and ethics” as the reason for his exit. Keki Mistry, a veteran from the HDFC Bank Group, was appointed interim chairman following Chakraborty’s resignation. Mistry stated that while there were “relationship issues” between Chakraborty and the executive leadership, there were no “substantive” concerns regarding the bank’s operations or governance. This marked the first time the part-time chairman of HDFC Bank left midway, raising questions about the bank’s internal stability. AT1 bonds are perpetual, high-yield debt instruments issued by banks to strengthen their Tier 1 capital in compliance with Basel III regulations. These bonds have no fixed maturity date, meaning investors may not recover their principal on a set timeline. However, banks often include call options to redeem the bonds after a specified period.#hdfc_bank #atanu_chakraborty #sampath_kumar #harsh_gupta #payal_mandhyan
If you want to have good governance, you cannot be in a yes-sir mode: Sashidhar Jagdishan HDFC Bank’s MD & CEO, Sashidhar Jagdishan, emphasized the importance of transparency and accountability in corporate governance, stating that the bank will convene multiple board meetings over the next month to review past decisions and address gaps. Jagdishan acknowledged that the recent resignation of Atanu Chakraborty as chairman, citing “values and ethics,” was an unexpected challenge that required a thorough examination of the bank’s processes and practices. He stressed that the bank would take a proactive approach to rectify any shortcomings and ensure strict adherence to ethical standards. Jagdishan described the situation as a “ghost” that emerged unexpectedly during Chakraborty’s tenure as chairman, which lasted five and a half years. He explained that when the issue of Chakraborty’s resignation was raised on March 18, the chairman refused to engage in a dialogue, insisting that he had no concerns to share. This refusal to address the matter openly created a rift, and Jagdishan noted that the damage caused by the resignation was already done. He expressed hope that Chakraborty’s subsequent statement, which downplayed the significance of his resignation, would not lead to new issues, as many existing concerns had already been addressed. The bank’s response to the resignation included a commitment to “act ruthlessly” against misconduct and tighten internal controls. Jagdishan highlighted that the board would re-examine past decisions, evaluate action points, and identify areas for improvement. He emphasized that the bank’s focus would be on restoring trust and ensuring that all stakeholders, including the board and management, were aligned in its governance practices.#board_meetings #hdfc_bank #atanu_chakraborty #sashidhar_jagdishan #corporate_governance
HDFC Bank shares continue to trade in the red following Chakraborty’s sudden exit; Check what analysts said HDFC Bank’s non-executive chairman, Atanu Chakraborty, abruptly resigned on March 18, citing differences over “values and ethics.” The management of the country’s second-largest lender described the reason as baffling, as Chakraborty did not provide specific instances despite repeated requests. Keki Mistry, a veteran of the HDFC Bank Group, was appointed as interim chairman, stating there may have been “relationship issues” between Chakraborty and the executive leadership but found no “substantive” concerns behind the departure. Mistry emphasized that the bank’s operations and governance remain stable. This marks the first time the part-time chairman of HDFC Bank has left midway, raising concerns about the bank’s functioning. JPMorgan noted that the chairman’s exit adds to existing macroeconomic challenges, potentially weighing on investor sentiment and increasing market volatility in the near term. The firm highlighted two key points from Chakraborty’s resignation letter: his mention of “certain happenings and practices within the bank… not in congruence with my personal values and ethics” and the fact that the benefits of the HDFC Bank–HDFC Ltd merger have not yet fully materialized. Analysts suggest the stock is likely to face continued pressure following the resignation announcement, with the impact amplified by a softer macroeconomic environment and geopolitical uncertainties. They warned that the reasons cited could signal potential material disagreements between the board and management, which might affect decision-making and execution. JPMorgan noted that while the letter does not allege specific misconduct, the perception alone could weigh on sentiment until credible steps are outlined and implemented.#ubs #hdfc_bank #jpmorgan #keki_mistry #atanu_chakraborty
Sensex down 1,800 points: What's behind the stock market crash today? The Sensex plunged over 1,800 points and the Nifty fell more than 2% as surging crude oil prices and concerns over HDFC Bank triggered a widespread sell-off across the market. Investors faced significant losses, with the market sliding over 2% in a broad-based downturn. The sharp decline was driven by a combination of global and domestic factors that simultaneously dampened investor sentiment. Crude oil prices surged past $111 per barrel following escalating tensions in the Middle East, raising fears of prolonged supply disruptions. India, which relies heavily on oil imports, is particularly vulnerable to rising prices, as higher costs could push inflation higher, weaken the rupee, and strain corporate profits. The recent attack on an Iranian LNG facility by Israel intensified these concerns, with investors worried that oil prices could remain elevated if regional tensions persist. HDFC Bank emerged as a key contributor to the market's downturn. The bank’s stock fell over 5% to around Rs 800 after part-time chairman Atanu Chakraborty resigned, citing “certain happenings and practices” within the bank that conflicted with his personal values. The sharper decline in HDFC Bank compared to its peers suggested a mix of stock-specific pressures and broader market weakness, further amplifying investor anxiety. Other banking stocks, including Axis Bank, ICICI Bank, and State Bank of India, also declined, dragging down benchmark indices. The sell-off extended across multiple sectors, indicating a broad-based market retreat rather than a sector-specific issue. Companies like Larsen and Toubro dropped over 3%, while Bajaj Finance and Shriram Finance saw sharp declines.#middle_east #india #geojit_investments #hdfc_bank #atanu_chakraborty
Atanu Chakraborty resigned as part-time chairman and independent director of HDFC Bank on March 18, 2026, citing ethical concerns over certain practices within the bank. In his resignation letter, he stated that the observed actions over the past two years “are not in congruence with my personal values and ethics,” which led to his decision to step down. He emphasized that there were no other material reasons for his resignation beyond those outlined in the letter. HDFC Bank confirmed in a regulatory filing that Chakraborty’s resignation was solely based on the reasons he provided. The bank also noted that it had applied for approval to appoint Keki Mistry as interim part-time chairman, which was granted by the Reserve Bank of India on the same day. Mistry will hold the position from March 19, 2026, for a three-month period. Chakraborty joined the bank’s board in May 2021, a tenure that coincided with significant developments, including the merger of HDFC Bank with HDFC Ltd. This merger created a financial conglomerate, positioning HDFC Bank as the second-largest bank in the country. In his resignation letter, Chakraborty acknowledged the strategic initiative but noted that “the benefits of the merger are yet to fully fructify.” The resignation comes amid ongoing discussions about governance and operational practices within the banking sector. Chakraborty’s departure marks a notable shift in leadership for HDFC Bank, which has been navigating challenges related to regulatory compliance and competitive pressures in the industry. The interim chairman’s role will be critical in maintaining stability during the transition period.#reserve_bank_of_india #hdfc_bank #atanu_chakraborty #keki_mistry #hdfc_ltd
