Shares of HDFC Bank rose 2 per cent in early trade on Tuesday, climbing to ₹759.20 compared with the previous close of ₹744.15. The stock had touched reflecting recent pressure on the counter.
At 9.39 am, the stock was trading 1.43 per cent higher at ₹754.80, recovering part of the losses seen over the past week. Despite today’s rebound, shares remain under pressure and have declined nearly 12 per cent since Chakraborty’s resignation.
The gains come as the bank’s board took a proactive step to address governance concerns by approving the appointment of external law firms, both domestic and international, to review the resignation letter submitted by former part-time chairman Atanu Chakraborty. The appointed firms have been directed to submit their findings within a reasonable timeframe,
It had initiated an independent legal review of Chakraborty’s resignation letter to reinforce the institution’s robust governance standards. The former chairman stepped down last week citing differences with the lender over values and ethics, a development that unsettled investors and weighed on the bank’s stock performance.
The lender clarified that Chakraborty did not refer to any specific incidents or practices that conflicted with his personal principles. It also stated previously that there were no material issues within the bank and suggested that the resignation may have resulted from differences between the chairman and the management.
Meanwhile, the RBI last week affirmed that HDFC Bank remains systemically important, financially sound and professionally managed, adding that no material governance concerns were on record.
The banking regulator has approved the appointment of Keki Mistry, a veteran of the HDFC Group, as the interim non-executive chairman for a period of three months.
Chakraborty, who was first appointed as part-time chairman in April 2021 and later reappointed in May 2024 for a term extending to May 2027.