HDFC Bank Shares Plunge 9% on Chairman Resignation Over Ethics

Mumbai, India – Shares of HDFC Bank plunged nearly 9 percent on Thursday, erasing over 65,000 crore rupees from its market value, following the abrupt resignation of its part-time chairman, Atanu Chakraborty, who cited ethical concerns over internal practices at the country's largest private lender.

Chakraborty, a former Indian Administrative Service officer and ex-secretary of the Department of Economic Affairs, tendered his resignation as part-time chairman and independent director on March 18, 2026, with immediate effect. His letter, dated March 17 and addressed to the chairman of the bank's governance, nomination, and remuneration committee, stated: "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. This is the basis of my aforementioned decision." He emphasized that no other material reasons, including financial, operational, or regulatory issues, prompted his exit.

The resignation marks the first time a part-time chairman of HDFC Bank has left midway through a term, raising questions about the institution's functioning amid its ongoing post-merger integration....