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Mumbai: Shares of HDFC Bank came under pressure on Thursday, March 19, after the country’s largest private lender’s part-time Chairman and Independent Director, Atanu Chakraborty, stepped down with immediate effect, citing a mismatch between his personal values and certain practices observed within the bank.

In domestic trade, the stock slipped over 4 per cent during the session, while its American Depositary Receipts (ADR) in the US market saw a steeper decline of 8 per cent, falling to USD 26.42 from a previous close of USD 28.71.

Chakraborty, who joined the bank’s board in 2021, stated in his resignation letter that certain developments over the past two years were “not in congruence” with his personal values and ethics. However, speaking to NDTV Profit, he was careful to distinguish between ethical disagreement and wrongdoing.

“I am not pointing out any wrongdoings at the bank. My ideologies did not match with the organisation, and hence it was time to part ways,” he said, reiterating that his exit was rooted purely in differences of approach and values, and not in any malpractice.

The Reserve Bank of India (RBI) has approved the appointment of Keki Mistry as interim part-time Chairman for a period of three months, effective March 19. Mistry sought to reassure stakeholders, stating there were no major issues following Chakraborty’s departure.

The leadership change has nonetheless weighed on investor sentiment. The bank’s market capitalisation stood at approximately Rs 12,36,130 crore on the BSE as of Thursday morning, having eroded by Rs 61,715 crore over the past week, making HDFC Bank one of the biggest losers among the country’s most valued companies during the period.

(With inputs from IANS)