The stock price of HDFC Bank Limited is showing signs of recovery.
On Wednesday, the shares of the world’s 10th largest bank by market capitalization rose to ₹794.80, up by nearly 4% from the previous closing price of ₹764.90.
Resignation Due to Governance and Ethics Issues
The stock sustained losses following news that its part-time chairman and independent director, Atanu Chakraborty, resigned due to governance and ethical concerns within the institution.
"Certain happenings and practices within the bank, that I have observed over the last two years, are not in congruence with my personal values and ethics. This is the basis of my aforementioned decision,” Chakraborty wrote in his resignation letter.
External Law Firms to Conduct Probe
HDFC is now seeing gains after taking action to address concerns related to Chakraborty’s sudden exit.
The bank appointed two domestic law firms, Trilegal and Wadia Ghandy & Co., and a US-based law firm to look into what pushed Chakraborty to quit.
In a filing submitted to the National Stock Exchange of India Limited and BSE Limited on Tuesday, the bank said that the law firms were advised to submit their report within a reasonable period of time.
“We wish to inform you that Mr. Chakraborty did not mention any happenings and practices which were not in congruence with his personal values and ethics,” the filing stated.
“To reinforce the robust governance standards of the Bank, the Board of Directors of the Bank at its meeting held on March 23, 2026, took a proactive step and approved the appointment of external law firms (domestic and international), to conduct review regarding Mr. Chakraborty’s resignation letter.”
HDFC Wants Objective and Fact-based Assessment
In a media statement also issued on Tuesday, the bank explained why it wants a third party investigation into the matter.
“Appointment of external law firms is a proactive measure taken by the Bank to independently look at the aspects mentioned in the letter so as to ensure an objective and fact based assessment,” HDFC Bank said.
“This step is keeping in view to constantly benchmark with the highest governance standards that the Bank has practiced over decades.”
