HDFC Bank Market Cap Drops ₹1 Lakh Crore After Chairman's Exit
Market cap falls after CEO exit; bank reassures investors.
HDFC Bank shares plunged nearly 8.5%, wiping out over ₹1 lakh crore in market value, following the abrupt resignation of part-time Chairman Atanu Chakraborty on March 18, 2026, who cited ethical concerns over certain bank practices.
Chakraborty's letter, dated March 17 and received the next day, stated that observations over two years conflicted with his personal values, prompting his exit despite a second term until 2027. The board expressed bafflement, claiming ignorance of specific issues, while denying any material governance or operational lapses. Keki Mistry, former HDFC Ltd. CEO, assumed interim Chairman duties for three months starting March 19.
Management swiftly convened a 9 AM investor call on March 19 to reassure stakeholders. CEO Sashidhar Jagdishan affirmed no impact on his reappointment—term ending October 26, 2026—with Deputy MD Kaizad Bharucha set for expanded responsibilities amid senior exits. Mistry emphasized alignment on strategy, strong compliance, and RBI comfort, dismissing power struggles.
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The stock hit intraday lows around ₹1,480 from ₹1,610, dragging the Nifty Bank index down 3%. Analysts attributed the rout to governance fears post-merger, though fundamentals like Q3 profit growth remain solid. Brokerages like Bernstein flagged delayed disclosure risks but retained overweight ratings.
This episode revives scrutiny on HDFC Bank's post-merger integration since July 2023, with multiple leadership transitions. Investors eye the Nomination Committee's CEO extension plans and regulatory probes, as Mistry's credibility helps stabilize sentiment.
Markets await clarity on Chakraborty's allegations, but management's proactive outreach signals continuity. With robust balance sheets and digital growth, HDFC aims to regain trust, though ethical lapses—real or perceived—could prolong volatility in India's banking heavyweight.
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