By Dalal Street Investment Journal (DSIJ)
HDFC Bank shares fell after part-time chairman Atanu Chakraborty resigned, though the stock price later recovered from the day’s low. The RBI said the bank remains a Domestic Systemically Important Bank (D-SIB) with sound financials, a professionally run board, and a competent management team. It added that, based on its periodic assessment, there are no material concerns on record regarding the bank’s conduct or governance.
HDFC Bank share price is down by 4.60% as of 11:27 AM on Thursday, March 19, 2026. The sharp fall in India’s largest private sector bank has come after the resignation of its part-time chairman, Atanu Chakraborty.
In an exchange filing dated March 18, 2026, HDFC Bank said Chakraborty resigned with immediate effect as part-time chairman and independent director. The bank also said the Reserve Bank of India had approved the appointment of Keki Mistry as interim part-time chairman from March 19, 2026, for a period of three months.
In his resignation letter, Chakraborty said he had joined the board in May 2021 and had witnessed major developments, including the merger of HDFC with HDFC Bank, a move that created a conglomerate under the bank. He noted that while the merger had made HDFC Bank the second-largest bank in the country, the benefits of the transaction were yet to fully fructify.
He also wrote that certain happenings and practices within the bank, which he had observed over the last two years, were not in congruence with his personal values and ethics, and said this formed the basis of his decision. At the same time, he recorded his appreciation for the board, senior management, independent directors, and key control functions, while wishing the bank success ahead.
Even as governance concerns have come into focus, HDFC Bank’s asset quality record has remained stable. While several peer-rated private sector banks witnessed volatility in gross NPAs during FY16 to FY25, HDFC Bank kept its gross NPA ratio in 0.9% to 1.5% range, supported by disciplined risk management and remaining below many of its rated peers. In Q3FY26 too, asset quality stayed steady, with the gross NPA ratio at 1.24% and the net NPA ratio at 0.42%.
The RBI, in its press release issued on March 19, said it had taken note of the recent developments at HDFC Bank and had approved a transition arrangement requested by the bank for the position of part-time chairman.
The central bank stated that HDFC Bank remains a Domestic Systemically Important Bank with sound financials, a professionally run board, and a competent management team. It further said that, based on its periodic assessment, there are no material concerns on record regarding the bank’s conduct or governance. The RBI also said the bank remains well capitalised, its financial position is satisfactory, and it has sufficient liquidity. The regulator added that it will continue to engage with the board and management on the way forward.
On March 19, HDFC Bank share price recovered from the day’s low after the RBI’s statement. HDFC Bank share price is down 18% on a year-to-date basis, while the stock has fallen about 12% in the last one month and 7.19% over the last one year.
SEBI Registered Research Analyst (INH000006396).
Founded in 1986, Dalal Street Investment Journal (DSIJ) brings decades of experience in India’s equity markets. DSIJ's research combines fundamental analysis with price action, guided by disciplined risk management and capital preservation. They follow a structured, data-driven approach designed to help investors and traders make informed decisions beyond short-term market noise.
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