Why Is HDFC Bank Share Price Falling? Stock Down 4% After Firing 3 Senior Executives; At 52-Week Low

HDFC Bank Share Price Today: Shares of HDFC Bank continued to extend losses on Monday, March 23. The banking heavyweight is struggling due to controversy around the abrupt exit of its part-time chairman Atanu Chakraborty. In another fresh development, HDFC Bank has reportedly asked its three top executives to leave the company.

HDFC Bank share price was trading 3.43% lower at Rs 753.7 per share on BSE with a market capitalisation of Rs 11,60,093.73 crore at 10:30 am. The stock had dipped to its 52-week low mark of Rs 752.85 per share on BSE on March 23. The stock touched an intraday high of Rs 768.30 per share.

Why is HDFC Share Price Falling Today?

While HDFC Bank stock was under pressure over the past two to three days. Fresh decline in HDFC Bank share price has come after the report of the lender that it has asked its three top executives to leave the country.

The bank terminated the services of Sampath Kumar, group head of branch banking, Harsh Gupta, executive vice president, Middle East, Africa, and NRI onshore business, and Payal Mandhyan, senior vice president, as reported Moneycontrol, citing sources. Goodreturns couldn't independently verify the development.

The Bank identified certain gaps in client‑onboarding requirements at its DIFC branch in the UAE and has completed a detailed and objective review of the matter. Appropriate remedial actions have been taken in line with internal policies. Personnel changes have been undertaken along with appropriate action as per the Bank's conduct regulation," HDFC Bank said in response to an email query from Goodreturns.

Atanu Chakraborty Exit From HDFC Bank

Atanu Chakraborty, a former secretary, Department of Economic Affairs, Finance Ministry, had been serving as the Non-Executive Chairman of HDFC Bank, one of India's largest private sector lenders.

In his resignation letter, Chakraborty stated, "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."

However, Atanu tried to walk back his comments a few hours later, and told a local television station that his resignation was "routine". He also clarified that his resignation was not indicative of any wrongdoing at the bank.

The bank has clarified that there are no governance, operational, or regulatory issues that have been brought to the board's attention before the resignation.

Chakraborty's resignation was also followed by the Reserve Bank of India (RBI) resignation. The central bank had endorsed the bank's governance record saying that "there are no material concerns on record as regards to its conduct or governance."

The bank clarified that this development happened without any cited material concern in the past and mentioned that there are no governance, operational, or regulatory issues that have been brought to the board's attention prior to the resignation.

HDFC Bank Share Price Recommendation

Motilal Oswal in its report, released on March 20, maintained its 'Buy' rating for HDFC Bank with a target price of Rs 1,100 per share. However, brokerage firm HSBC had cut its target price on the stock to Rs 990 per share from Rs 1,070, reported CNBC TV 18.

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