HDFC Bank Shares : In a sudden move, HDFC Bank part-time chairman Atanu Chakraborty resigned with immediate effect on Wednesday, citing personal values and ethics. Chakraborty, who joined HDFC Bank’s board in May 2021, submitted his resignation to the Chairman of the Governance, Nomination, and Remuneration Committee of the bank.
In his resignation letter, Chakraborty stated, “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.” He further clarified that there were no other reasons for his exit.
Chakraborty highlighted key milestones during his tenure, including the merger of HDFC Bank with HDFC Ltd, which created one of India’s largest banking conglomerates. “Though the benefits of the merger are yet to fully fructify, this strategic initiative made HDFC Bank the second largest bank in the country,” he noted.
Despite the resignation, Chakraborty expressed gratitude toward the board and senior management for their cooperation, acknowledging the efforts of fellow independent and non-executive directors.
HDFC Bank Confirms Resignation
Following Chakraborty’s departure, HDFC Bank confirmed the resignation in an exchange filing, stating, “We confirm that there are no reasons other than those mentioned in the said letter, for the resignation of Chakraborty.” The bank also noted that Chakraborty does not hold directorship in any other company and expressed appreciation for his contributions.
The Reserve Bank of India has approved the appointment of Keki Mistry, former vice-chairman of HDFC Ltd., as the interim part-time chairman of HDFC Bank, effective March 19 for a period of three months.
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Atanu Chakraborty: Professional Background
A retired IAS officer of the Gujarat cadre, Chakraborty has held prominent government positions including Secretary in the Ministry of Finance (Department of Economic Affairs) during FY 2019-20. In this role, he coordinated economic policymaking for all ministries and departments and oversaw the entire budget formulation process.
Chakraborty has also served as Director and Joint Secretary in the Department of Expenditure, Ministry of Finance, managing infrastructure project appraisals and government subsidies. Additionally, he played a crucial role in modernizing the government’s financial and procurement rules. At the state level in Gujarat, he headed the Finance Department and worked on private sector investment legislation.
Impact on HDFC Bank Shares
Following the resignation news, HDFC Bank shares fell sharply, reflecting investor concerns. US-listed HDFC Bank ADRs dropped over 7% overnight before gaining 1% in extended trading. In the Indian market, HDFC Bank shares fell 4.73%, trading at Rs 800.40 from the previous close of Rs 842.95.
Brokerage firm JPMorgan maintained a “neutral” rating with a price target of Rs 1,090, noting that HDFC Bank shares are likely to trade weak in the short term due to the resignation and broader macroeconomic uncertainties. HDFC Bank shares are also trading close to their 52-week low of Rs 812, down 8% over the past month. With a market capitalization of Rs 12.97 lakh crore, HDFC Bank remains the second largest bank in India.