HDFC Bank plunges after chairman quits, citing ethical concern

Shares of India’s largest private sector lender, HDFC Bank, tumbled sharply on Thursday, marking their worst session since the Covid-era crash, after its part-time chairman Atanu Chakraborty resigned abruptly, citing concerns over internal practices and ethics.

- Mazhar Farooqui

Atanu Chakraborty. — ANI FILE

The stock fell about 9 per cent in early trade, wiping out nearly $12billion (approximately Dh40 billion) in market value within minutes of the opening bell. By late morning, it was trading around Rs804.50 (about Dh32), after hitting an intraday low of Rs770.

The sharp fall comes as the bank faces renewed scrutiny following Chakraborty’s sudden exit on Wednesday.

In his March 17 resignation letter seen by Khaleej Times, Chakraborty pointed to governance concerns within the bank.

“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,” he wrote.