HDFC Bank Crisis: ₹1 Lakh Crore Wiped Out After Chairman's Sudden Exit
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The sudden resignation of HDFC Bank chairman Atanu Chakraborty triggered a sharp market reaction, wiping out over ₹1 lakh crore in investor wealth within hours.
Shares of the bank plunged nearly nine per cent in early trade, hitting a fresh 52-week low after the announcement late Wednesday.
The stock has slightly recovered since then and is trading at 810.80, 3.8 per cent down from yesterday's close.
Chakraborty cited ethical concerns over certain practices within the bank that conflicted with his personal values in his resignation letter dated March 17.
He clarified that there were no other reasons behind his decision and stressed he was not alleging wrongdoing at the bank.
Interim chairman Keki Mistry sought to calm investor nerves, saying there were no governance or operational issues flagged during board discussions.
The RBI also issued a statement backing the bank and seeking to reassure stakeholders, saying HDFC Bank remains a sound financial institution with a professionally run board and competent management team.
Analysts said the correction may be excessive, with HDFC Bank's fundamentals remaining strong, and the sell-off may be a buying opportunity.
