HDFC Bank shares trade lower after appointing chairman, CEO search on
New Delhi, June 30
Shares of India's largest private lender, HDFC Bank, traded lower in early trade on Tuesday after the bank appointed former Finance Secretary Rajiv Kumar as its new part-time Chairman for a period of three years.
The private lender's stock declined as much as 0.62 per cent to Rs 794, hitting an intraday low on the BSE at around 9:45 am.
At the last count, the stock was trading at Rs 794.55, down 0.56 per cent.
The selling pressure came after the bank -- in a regulatory filing on Monday -- announced Kumar's appointment as part-time chairman.
Kumar succeeds Atanu Chakraborty -- who stepped down as part-time chairman earlier this year -- citing concerns over practices that he said were not aligned with his personal values and ethics.
Following his resignation in March, Keki Mistry was appointed interim part-time chairman to ensure continuity until a permanent appointment was made.
Meanwhile, reports said HDFC Bank's Governance, Nomination and Remuneration Committee (NRC) did not consider the reappointment of the bank's chief executive officer (CEO) at its meeting on Monday.
According to the reports, the bank is expected to initiate the CEO reappointment process shortly and prefers to have a permanent chairman in place before taking up the matter.
Moreover, the banking stock has touched a 52-week high of Rs 1,020.35 and a 52-week low of Rs 726.75 on the BSE. In the last one year , it declined by over 20 per cent and about 20 per cent in the last six months.
Additionally, NDTV Profit has reported that former HDFC Bank Chairman Atanu Chakraborty has described the legal review of his resignation as being caveated and superfluous, saying it focused largely on compliance issues instead of the broader concerns he had raised about certain business practices at the bank.
— IANS
Reader Comments
As a small investor, I'm concerned. Stock down 20% in a year is not good for retail holders like me. But having a former Finance Secretary could bring regulatory insight. Let's give the new chairman some time before judging. 📉
Chakraborty's resignation was a red flag—he literally said his 'personal values and ethics' were compromised. Now the legal review seems like a cover-up. Banks need strong governance, not just compliance checks. CEO search better address these deeper issues.
Why is the market reacting so negatively? Kumar is a seasoned IAS officer who has handled finance at the highest level. Stock market is overreacting as usual. HDFC Bank's fundamentals are still strong. Buy the dip! 💪
I work in the banking sector, and HDFC's internal culture has been a topic of debate for a while. The fact that Chakraborty's concerns were dismissed as 'caveated' is troubling. Let's hope the new chairman brings fresh perspective. Otherwise, this could be a long-term issue.
Good news for value investors like me. Stock at 52-week lows near 727, almost 25% down from peak. If you believe in HDFC's long-term story, this is the time to accumulate. Leadership changes are temporary—brand strength is permanent. 🏦
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