HDFC Bank shares drop 10% in three sessions after Atanu Chakraborty’s exit; lender sacks 3 senior executives

Shares of HDFC Bank  extended their losing streak for a third consecutive session, sliding over 10% during the period as investor sentiment weakened following concerns around the resignation of part-time Chairman Atanu Chakraborty. In his exit note, Chakraborty cited a “lack of congruence with personal values and ethics,” unsettling market confidence.

Investor wealth worth nearly ₹1.35 lakh crore has been eroded over the past three trading sessions, with the bank’s total market capitalisation falling to ₹11.66 lakh crore from ₹13 lakh crore as of March 18, 2026.

On Monday, the stock lost another 3% to hit a fresh 52-week low of ₹755 on the BSE, with over 10 lakh shares changing hands in early trade. At current levels, the stock is down 26% from its 52-week high of ₹1,020.35 touched on October 23, 2025.

The stock has corrected over 18% in the past month, more than 21% in the last six months, and around 24% so far in calendar year 2026.

Despite the steep correction, most analysts have retained a ‘Buy’ rating, noting that Chakraborty’s resignation appears to stem from differences in perspective rather than any governance lapses. The Reserve Bank of India has also stated that it has “no material concerns regarding the conduct or governance” of the bank.

In a late-evening exchange filing on March 17, HDFC Bank confirmed that Chakraborty stepped down with immediate effect, citing ethical concerns. His resignation letter referred to “certain happenings and practices within the bank… not in congruence with my personal values and ethics,” without elaborating further. The bank clarified that there were no additional reasons for his exit beyond those stated.

Following the development, the board moved swiftly to ensure continuity, convening immediately and securing RBI approval to appoint Keki Mistry as interim part-time chairman for a three-month period. Mistry reiterated his confidence in the bank’s governance standards, stating he would not have accepted the role otherwise, and firmly dismissed any suggestion of a power struggle at the board level.

Lender fires three senior executives

In a separate development, the lender has reportedly terminated three employees, including senior executives, after an internal investigation revealed alleged mis-selling of high-risk AT1 bonds to NRI clients through its overseas operations. The move follows regulatory scrutiny and investor complaints linked to transactions carried out via the bank’s Dubai branch.

Those dismissed include Sampath Kumar, Group Head of Branch Banking; Harsh Gupta, Executive Vice President for the Middle East, Africa and NRI onshore business; and Payal Mandhyan, Senior Vice President.

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