Mumbai, March 19 India's largest lender HDFC Bank's equities came under sharp selling pressure globally on Thursday, with its American Depositary Receipts (ADR) plunging 8 per cent to $26.42 from the previous close of $28.71.
In the domestic market, shares of the country’s largest private lender were among the top laggards, falling as much as 8.66 per cent to hit an intraday low of Rs 770, compared to the previous close of Rs 843.
The decline comes amid a key management development, as HDFC Bank’s part-time Chairman and Independent Director Atanu Chakraborty resigned from his position with immediate effect on March 18, according to an exchange filing.
The Reserve Bank of India (RBI) has approved the bank’s request to appoint Keki Mistry as the interim part-time Chairman, effective March 19, for a period of three months.
Mistry, however, said there are no major issues after Atanu Chakraborty’s exit.
Chakraborty had joined the bank’s board in 2021. In his resignation letter, he cited concerns over certain developments within the bank over the past two years.
At 9:44 am, the company’s market capitalisation stood at approximately Rs 12,36,130 crore on the BSE.
“Certain happenings and practices within the bank, that I have observed over last two years, are not in congruence with my personal values and ethics. This is the basis of my aforementioned decision. I confirm that there are no other material reasons for my resignation other than those stated above,” he said.
Speaking to NDTV Profit, Chakraborty clarified that his resignation was not linked to any wrongdoing at the bank.
“I am not pointing out any wrongdoings at the bank. My ideologies did not match with the organisation, and hence it was time to part ways,” he told NDTV Profit, adding that his decision stemmed purely from ideological differences.
He reiterated that there were no malpractices within the organisation and that his exit was based solely on differences in approach and values.
In addition, the bank has witnessed a significant decline in its market capitalisation over the past week, eroding by Rs 61,715 crore. Among the country’s most valued companies, HDFC Bank was one of the biggest losers during the period.
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