Shares of HDFC Bank came under sharp selling pressure on March 19, 2026, falling over 4% in early trade. The stock was trading at ₹806 around 9:19 AM, down ₹37 or 4.39%. On the BSE, it opened 4.45% lower. The bank’s American Depositary Receipts also declined more than 7% overnight to $26.62.
The weakness adds to the stock’s recent downtrend. HDFC Bank shares have fallen nearly 8% over the past month, 13% in six months, and about 15% so far in 2026.
Ethical Concerns Cited by Atanu Chakraborty
Atanu Chakraborty, who joined the bank’s board in May 2021, resigned citing that certain developments and practices over the past two years were not aligned with his personal values and ethics. He stated that these concerns led to his decision to step down.
During his tenure, Chakraborty oversaw several key developments, including the merger with HDFC Ltd, which created one of India’s largest financial conglomerates. However, he noted that the full benefits of the merger are yet to materialize.
His resignation letter was dated March 17, 2026. The bank clarified that it received the letter on March 18 after market hours and announced his exit as Part-time Chairman and Independent Director with immediate effect.
Interestingly, HDFC Bank shares had already closed lower on March 18 despite broader markets being positive, triggering market speculation about possible insider activity.
Bank Issues Regulatory Clarification
Amid rising media attention, HDFC Bank issued a regulatory statement clarifying that there were no reasons for the resignation other than those mentioned in Chakraborty’s letter. The bank firmly ruled out any undisclosed factors and expressed appreciation for his contributions, wishing him well for the future.
RBI Approves Interim Chairman
Following the resignation, the Reserve Bank of India approved the appointment of Keki Mistry as interim Part-time Chairman for three months starting March 19, 2026. The move ensures leadership continuity while the bank searches for a permanent successor.
Q3 Financial Performance
Despite the leadership transition, HDFC Bank reported strong quarterly results. Standalone net profit rose 11% year-on-year to ₹18,654 crore in the December quarter, compared to ₹16,735 crore a year earlier, exceeding market estimates of ₹18,473 crore.
Conclusion
The resignation of Atanu Chakraborty, subsequent clarification from HDFC Bank, and the market reaction have intensified focus on the bank’s governance. While the bank has denied any undisclosed reasons, the leadership change and ongoing market pressure may continue to influence investor sentiment in the near term.
