HDFC Bank slips over 2%

Shares of HDFC Bank ended over 2 per cent lower, extending the previous day’s losses, after its non-executive chairman Atanu Chakraborty abruptly resigned, citing differences over “values and ethics”. The bellwether stock declined 2.41 per cent to settle at Rs 780.45 on the BSE.

During the day, it dropped 2.63 per cent to Rs 778.60. At the NSE, it edged lower by 2.22 per cent to end at Rs 780.45. Shares of HDFC Bank had dived over 5 per cent on Thursday. The company’s market valuation has eroded by Rs 95,575.65 crore to Rs 12,01,267.28 crore in two days.

HDFC Bank’s non-executive chairman, Atanu Chakraborty, abruptly resigned, citing differences over “values and ethics” -- a ground that the management of the country’s second-largest lender said was baffling, as the former bureaucrat offered no specific instance despite repeated requests.

Keki Mistry, a veteran of the HDFC Bank Group, who was appointed the interim chairman following the resignation, said there may have been “relationship issues” between Chakraborty and the executive leadership, but found no “substantive” concerns behind the departure. Mistry emphasised that the bank’s operations and governance remain stable.

This is the first time that a part-time chairman of HDFC Bank left mid-way, raising concerns over the lender’s functioning.