HDFC Bank share price surged 3% in Tuesday’s trading session, snapping a four-day losing streak, after the bank said it has tapped external counsel to review the ex-chairman’s resignation.
The stock of India’s largest private lender opened at ₹755 apiece on March 24, as compared to the previous close of ₹744.15. HDFC shares have declined over 12% in the last four sessions.
HDFC Bank taps law firm to review chairman’s resignation
In an exchange filing on Monday, HDFC Bank informed the exchanges that it has appointed external law firms to review the resignation letter of its part-time chairman, Atanu Chakraborty.
It further said that the law firms have been advised to provide their report on the same within a reasonable period of time.
Atanu Chakraborty stepped down as part-time chairman and independent director of the lender on March 18, citing differences with the board.
In his resignation letter, Chakraborty said that certain developments and practices he had observed within the bank over the past two years were not aligned with his personal values and ethics, and he cited this misalignment as the reason for his decision to step down.
Additionally, on March 23, the lender also clarified about the recent termination of three employees, following an internal investigation linked to a regulatory notice from Dubai, adding that the matter had no material impact on the bank.
In a clarification to exchanges, the lender referred to a report stating that the action stemmed from a decision notice issued on September 25, 2025, by the Dubai Financial Services Authority (DFSA) to its branch in the Dubai International Financial Centre (DIFC).
The bank said its Governance, Nomination and Remuneration Committee (GNRC) had initiated an internal probe under its conduct regulations. The investigating officer submitted findings to the disciplinary committee, which, after deliberation, recommended accountability measures to the GNRC.
At its meeting on March 9, the GNRC approved the actions, including the dismissal of the three employees. The bank added that the affected employees have the option to appeal the decision before the Appellate Authority, which is its board of directors.
HDFC Bank share price trend
HDFC Bank share price has remained under pressure in the near term amid weak market sentiments.
The private lender stock has shed 11% in a week, as compared to Nifty 50’s 3.68% decline. Furthermore, the banking stock has descended 17.47% in a month and 24.18% in terms of year-to-date (YTD).
Looking at the broader level, the stock has given moderate returns of 1.63% in the last five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
