HDFC Bank Probes Ex-Chairman Exit as Shares Plunge 12%

BANKINGFINANCE

Overview

HDFC Bank is appointing external law firms to investigate the abrupt resignation of its part-time chairman, Atanu Chakraborty. Chakraborty cited ethical differences, a move that has seen the bank's shares plummet nearly 12%. The lender stated it was unaware of any specific practices conflicting with his ethics prior to his departure.

Investigation Underway

HDFC Bank confirmed Tuesday it has engaged international and domestic law firms to investigate the circumstances surrounding the sudden resignation of its former chairman, Atanu Chakraborty. Chakraborty stepped down last week, citing unspecified ethical differences. He had joined the bank in 2021.

Market Impact

The resignation triggered a significant market reaction, with HDFC Bank's stock falling about 12% leading up to Tuesday's trading session. This sharp decline prompted the bank to initiate its formal review.

Bank's Statement

In a regulatory filing, HDFC Bank stated that Chakraborty had not informed them of any operational practices or issues that conflicted with his personal ethics prior to his departure. The bank expects the law firms to deliver their findings within a reasonable timeframe to clarify the situation for investors.

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