What should investors do with HDFC Bank stock as Atanu Chakraborty resigns?

HDFC Bank shares hit a fresh 52-week low on Thursday, falling over 8 per cent on the NSE, following the resignation of its Chairman Atanu Chakraborty. Analysts warn of near-term pressure

HDFC Bank share price today

 

HDFC Bank shares hit a fresh 52-week low on Thursday, falling over 8 per cent on the National Stock Exchange (NSE), following the resignation of its Chairman Atanu Chakraborty. Analysts said Chakraborty's allegations of the Board-Management misalignment could keep the stock under pressure in the near-term until clarity emerges.

 

"The Chairman's exit has come at a time when the lender was dealing with macro uncertainties. The development is set to keep the stock weak in the near future," noted those at JPMorgan.  

 

Overnight, HDFC Bank ADRs (American Depository Receipts) plunged 7.3 per cent to settle at $26.6 per scrip on the New York Stock Exchange (NYSE). They were up 1 per cent in the after market trade.

 

 

Back home, HDFC Bank stock tanked 8.6 per cent intraday and hit a low of ₹770 per share on the NSE. Around 52.83 million shares, worth ₹4,211.65 crore, had changed hands on the counter till 9:33 AM. The NSE Nifty50 index was down 1.9 per cent, while the Nifty Bank index slipped 2.5 per cent at the time of writing this report.

 

The stock has declined 8 per cent over the past one month, and 15 per cent so far in calendar year 2026.   CHECK Stock Market LIVE Updates 

HDFC Bank concall updates after Atanu Chakraborty resignation

Notably, HDFC Bank shares recovered partially and were down around 4.7 per cent after the bank's management held a concall with analysts and investors.

 

Assuaging concerns Shashidhar Jagdishan, chief executive officer (CEO) of HDFC Bank said any organisation, small or big, will have issues, but these are all addressed.

 

"Human beings are human beings, and there will be issues at individual levels.. That said, there has been no power struggles," he said.

 

He also added that the Reserve Bank of India (RBI) has conducted many examinations and supervisions during their regular visits. "The fact that we continue to remain in our position says it all".  "We will re-examine our organisation structure and announce it at an appropriate time," he added.

 

Meanwhile, Keki Mistry assured all stakeholders that there are no material matters concerning the Bank. Atanu Chakraborty's resignation, he said, qas not linked to bank's conduct and/or regulatory concerns.

 

"I would not have taken the responsibility of a part-time Chairman at the age 71 if it did not align with my principles and integrity... HDFC Bank's culture is grounded in transperancy, integrity, and long-term value creation," he said.

 

Praising Jagdishan, Mistry said CEO Sashidhar Jagdishan has been running the bank successfully for the last many years, and we hope he will continue with the same devotion. 

RBI statement on HDFC Bank

Meanwhile, the Reserve Bank of India (RBI), too, said there were no material concerns regarding governance or conduct at HDFC Bank. The lender has sound financials, professionally run board and competent management team, it said.

Atanu Chakraborty resigns: What should investors do?

Atanu Chakraborty decided to step down from his post of part-time chairman and independent director of the bank with immediate effect because certain happenings and practices within the bank, which he observed over last two years, were not in congruence with his personal values and ethics.

 

Without clarifying further, Chakraborty said "I confirm that there are no other material reasons for my resignation other than those stated".

 

Meanwhile, the Board has appointed Keki Mistry as the interim part-time chairman with effect from March 19, 2026, for a period of three months.

 

JPMorgan believes Chakraborty's reasons of values and ethics misalingment raises concerns over 'Board-Management' alignment. 

 

"Though he has not alleged any misconduct, the (negative) perception may weigh on the stock until clarity emerges," the brokerage said with a 'Neutral' rating. JP Morgan has a target of ₹1,090 on HDFC Bank stock.

 

Echoing similar views, another analyst at a domestic brokerage, who did not wish to be named, said new investors should stay away from the stock until there is some clarity.

 

That said, striking a slightly optimistic note, Gaurang Shah, senior vice-president at Geojit Investments, said that while the stock could edge lower over the next few days, it remains a long-term bet.

 

"HDFC Bank stock has already corrected from highs. Thus, selling at these levels make no sense. The fundamentals of the Bank remain strong. Investors, who have investible amount, may average their positions in this decline and hold the stock from a long-term perspective," Shah suggested.

 

HDFC Bank fundamentals

During the October-December quarter (Q3FY26), HDFC Bank reported a net interest income (NII) of ₹32,615 crore (up 6.4 per cent Y-o-Y/3.4 per cent Q-o-Q); Operating profit of ₹27,097.8 crore (up 8.4 per cent Y-o-Y/down 3 per cent Q-o-Q); and a net profit of ₹18,653.8 crore (up 11.5 per cent Y-o-Y/0.1 per cent Q-o-Q). 

 

Total advances of the lender grew 2.7 per cent Q-o-Q and 12 per cent Y-o-Y to ₹40.88 trillion, while total deposits increased 2.1 per cent Q-o-Q and 11.6 per cent Y-o-Y to ₹25.63 trillion.

 

Analysts at Deven Choksey Research said HDFC Bank delivered a resilient Q3 performance characterised by steady balance-sheet expansion and stable asset quality, albeit with margin pressures. 

 

"Overall, the quarter reflected durable franchise strength and prudent risk management, but limited near-term earnings momentum due to elevated cost of funds".

 

The brokerage had revised its rating on the stock to 'Buy' (from 'Accumulate') with a share price target of ₹1,149.

 

Notably, the management expects to outpace the system’s projected 12-13 per cent credit growth in FY27. Atanu Chakraborty pointed out in his letter that the benefits of merger are yet to fully fructify.      ===========  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.