With the merger between HDFC Bank and HDFC, this entity has now become the fourth largest bank in the world.
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Indian shares hdfc bank It fell 5% on Thursday after its part-time chairman Atanu Chakraborty resigned footpath Governance and ethical concerns within the organization.
During an investor call on Thursday, Keki Mistry, the interim part-time chairman, said Chakraborty had not provided any evidence or details of the alleged unethical practices to the board.
“Certain incidents and practices within the bank, which I have observed over the past two years, are not consistent with my personal values ​​and ethics,” Chakraborty said in his resignation letter.
Foreign institutional investors hold more than 47% stake in India’s largest private sector lender. The Singapore government and Norway’s Government Pension Fund Global are among the top foreign investors in HDFC Bank, holding about 2.3% and over 1.2% stake respectively.
The middle and junior levels of the organization “should form the core of a revamped organisation”, Chakraborty said in his resignation letter dated March 17, which was handed over to HDFC Bank during late market hours on Wednesday.
Mistry’s appointment is a “strong firefighting step”, Deven Choksey, founder and managing director of wealth management firm DRChoksey Finserv, said in a note on Thursday.
He warned that HDFC shares could see “significant selling pressure”, and advised investors to avoid “bottom fishing” until governance concerns are resolved.
HDFC Bank and India’s banking system regulator, the Reserve Bank of India, did not immediately respond to emails seeking comment.
As of Wednesday, HDFC Bank’s market cap stood at Rs 13.08 trillion ($140 billion), according to LSEG data, higher than the Rs 9.95 trillion valuation of State Bank of India, the country’s largest public sector lender.
