Shares of HDFC Bank, the country’s largest private lender in terms of market capitalisation, declined over 8% in early trade on Thursday after its part-time chairman and independent director Atanu Chakraborty resigned with immediate effect on Wednesday. 

Weighed down by the development, HDFC Bank tumbled as much as 8.4% to 772 in the early trade. Paring half of opening losses, the banking heavyweight was down by around 4.8% at 802.35, while its market capitalisation declined to 12.37 lakh crore.

In his resignation letter dated March 17, Chakraborty said that “certain happenings and practices within the bank… are not in congruence with my personal values and ethics,” without elaborating further.

The bank, in its regulatory disclosure on March 18, confirmed that there were “no reasons other than those mentioned in the resignation letter” for his exit.

Chakraborty’s resignation comes into effect immediately, cutting short his tenure that was scheduled to run until May 2027.

In a separate release, the bank informed exchanges that it will host a call with analysts and investors at 09:00 hours (IST) today, in relation to the intimation made by the bank on March 18, 2026.

The board has appointed Keki Mistry as interim part-time chairman for a period of three months, with approval from the Reserve Bank of India (RBI), effective March 19.

While the resignation letter avoids detailing specific issues, Chakraborty’s reference to “happenings and practices” over the past two years points to concerns that may have developed during a critical phase for the bank.

Chakraborty, a former economic affairs secretary, had joined the board in May 2021 and oversaw the bank through the merger process, which transformed the institution into a financial conglomerate.

For the third quarter of FY26, the bank reported net profit growth in the high single digits year-on-year, continued expansion in advances, particularly in retail and SME segments.

The bank reported a net profit of ₹18,653.75 crore for the quarter ended December 2025, marking an 11.4% year-on-year (YoY) increase from ₹16,735.50 crore in the corresponding period last year. Net interest income (NII) rose 6.4% YoY to ₹32,615 crore, supported by healthy balance sheet growth. Pre-provision operating profit (PPOP) increased 8.4% YoY to ₹27,097.80 crore, compared with ₹25,000.40 crore a year ago. Non-interest income recorded a strong growth of 15.7% YoY, reaching ₹13,253.84 crore during the quarter.

Asset quality showed mild sequential pressure. The gross NPA ratio remained unchanged at 1.24%, while the net NPA ratio was also steady at 0.42% quarter-on-quarter. In absolute terms, gross NPAs rose 2.6% sequentially to ₹35,178.98 crore, while net NPAs increased 4.7% to ₹11,981.75 crore.

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