HDFC Bank Slides 9% In Early Trade After Chairman's Exit

HDFC Bank shares fell sharply at the start of trade on Thursday. They dropped as much as 9% and erased nearly ₹1 lakh crore in market value within minutes. The stock opened weak and quickly extended losses, dragging down the market capitalisation of the bank in the process.

This marks the lender’s steepest single-day decline since March 2020, when the stock had dropped close to 13% during the Covid-led market crash. The decline, in which the HDFC Bank share price hit a fresh 52-week low of ₹770, comes at a time when HDFC Bank continues to be among the most closely watched stocks in the market, which is why the move had a noticeable impact on overall sentiment.

Chairman’s Resignation Triggers Concerns

The immediate trigger for the selloff was the resignation of part-time Chairman and independent director Atanu Chakraborty. In his exit communication, Chakraborty flagged concerns over certain practices at the bank. He said these did not align with his personal values and ethics.

There was no immediate clarification from the bank addressing the issues raised. The absence of further details added to the uncertainty.

A Stable Large-Cap

The magnitude of the fall stands out when seen against the bank’s recent trading history. HDFC Bank has typically been viewed as a stable large-cap name with limited volatility. Thursday’s drop comes close to that level in early trade. Intraday recovery has been limited so far, indicating sustained selling pressure.

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Impact On Benchmark Indices

HDFC Bank’s slide hit the benchmarks right at the open. Both Sensex and Nifty 50 started the session deep in the red. Selling was not confined to one counter, but the bank’s heavy weight on indices worsened the fall.

Sources:

The Economic Times

News 18