Banking
HDFC Bank shares drop 8% as Atanu Chakraborty steps down as chairman
Mumbai/IBNS: Shares of HDFC Bank plunged over 8 percent on Thursday following a sudden change in its top leadership, media reports said.
The stock dropped as much as 8.4 percent to an intraday low of Rs 772 on the BSE.
The sharp fall came after Atanu Chakraborty, part-time chairman and independent director of the bank, resigned with immediate effect citing ethical concerns.
In his resignation letter, Chakraborty said he was not aligned with certain decisions taken by the bank over the past two years.
“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 wrote, as quoted by NDTV.
“I confirm that there are no other material reasons for my resignation other than those stated above,” he added.
Reflecting on his tenure, Chakraborty said the period saw key developments, including the merger with HDFC Ltd, which created a financial conglomerate and made HDFC Bank the second-largest lender in the country. He noted, however, that the full benefits of the merger are yet to be realised.
Following his exit, the Reserve Bank of India has approved the appointment of Keki Mistry as the interim part-time chairman for a period of three months from March 19.
Mistry had earlier served as vice-chairman of HDFC Ltd prior to its merger with the bank.
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