There was a strong fall on Dalal Street on Thursday, in which HDFC Bank shares suffered the biggest blow. The stock fell by almost 9%, wiping out more than ₹ 1 lakh crore of the company’s market value in a single day. This is the biggest decline since March 2020. The biggest reason for this decline was the resignation of the bank’s part-time chairman and independent director Atanu Chakraborty.
He wrote in his letter that in the last two years, there were some things and ways of working in the bank which did not match his personal values and ethics. For this reason he decided to leave the post. He also said that many big decisions were taken during his tenure, such as the merger with HDFC, due to which the bank became one of the largest financial groups in the country. However, the full benefits of this merger are yet to be realized.
Who is Atanu Chakraborty?
Atanu Chakraborty has been a 1985 batch IAS officer of Gujarat cadre. He has been the Secretary of Economic Affairs in the Ministry of Finance, Government of India and retired in April 2020. He has also represented India in the World Bank and has also been a member of the Central Board of RBI. Talking about his education, he has done engineering from NIT Kurukshetra, diploma in business finance from ICFAI Hyderabad and MBA from University of Hull, UK.
What action did the bank take now?
After the resignation, HDFC Bank immediately made Keki Mistry the interim part-time chairman, which also got the approval of RBI.
What did Keki Mistry say?
Keki Mistry clarified that there is no power struggle or internal dispute within the bank. He said that major differences were never seen in the board meetings. He also said that the rest of the board members were not aware of the issues mentioned by Chakraborty. According to Mistry, the bank’s team is united and will continue to work together in future also. He assured the investors that the governance of the bank is strong and there is no major crisis. It also said that this resignation will not have any impact on the business or profits of the bank.
overall
The huge fall in the shares of HDFC Bank surprised the market, but the bank management says that the internal situation is stable. Now investors will keep an eye on the future situation and performance of the bank.