HDFC Bank shares continue to trade in the red following Chakraborty’s sudden exit; Check what analysts said

Keki Mistry, a veteran of the HDFC Bank Group, was appointed as the interim chairman following the resignation and said there may have been “relationship issues” between Chakraborty and the executive leadership but found no “substantive” concerns behind the departure.

Mistry emphasised that the bank’s operations and governance remain stable.

This is the first time that the part-time chairman of HDFC Bank left midway, raising concerns over its functioning.

What analysts said

JPMorgan said in its latest note that the exit of HDFC Bank’s chairman adds to existing macro headwinds and could weigh on sentiment, with elevated volatility expected in the near term.

“Two things stood out to us in the resignation letter: (i) Mr Chakraborty cited ‘certain happenings and practices within the bank… not in congruence with my personal values and ethics’ as a key reason for stepping down; and (ii) the benefits of the HDFC Bank–HDFC Ltd merger are yet to fully fructify,” the financial services firm said.

Analysts believe the stock is likely to remain under pressure following the resignation announcement, with the impact further amplified by a softer macro backdrop amid geopolitical uncertainties.

They added that the reasons cited raise concerns about potential material disagreements between the board and management, which could affect decision-making and execution. “While the letter does not allege specific misconduct, perception alone can weigh on sentiment until credible steps are outlined and delivered,” JPMorgan noted.

UBS on HDFC Bank

Analysts at UBS note that the part-time chairman has resigned on concerns over 'certain happenings and practices' at the bank. The bank has appointed Keki Mistry as interim part-time chairman for three months. While there are no other details available, this could put near-term pressure on the stock price, UBS said.