HDFC Bank share performance: Before, during tenure, post Atanu Chakraborty’s resignation

Summary: HDFC Bank shares have shown strong growth over the past few years but fell sharply following chairman Atanu Chakraborty’s unexpected resignation, triggering investor concerns over governance and leadership stability.

Before Chakraborty’s Tenure

Prior to Atanu Chakraborty’s appointment as part‑time chairman in 2021, HDFC Bank’s shares had already been on a long bull run, boosted by robust earnings, expanding retail and corporate banking businesses, and strong asset quality. The bank’s position as one of India’s leading private sector lenders helped its stock deliver steady returns to investors over the long term. :contentReference[oaicite:0]{index=0}

During His Tenure

Atanu Chakraborty, appointed by the RBI in April 2021 and reappointed in 2024, served as part‑time chairman through key phases including the merger with HDFC Ltd, which expanded the bank’s asset base and market capitalization. Even during these years, HDFC Bank’s shares reached record highs, with strong investor interest tied to long‑term growth prospects and perceived stability in leadership. :contentReference[oaicite:1]{index=1}

Post Resignation Share Reaction

His sudden resignation on March 18, 2026, citing differences with management and concerns over internal practices, triggered significant market volatility. Shares plunged sharply, with the ADR on the NYSE dropping around 7% shortly after the announcement and Indian‑listed stock dipping as well. Markets reacted to uncertainty around governance and leadership continuity. :contentReference[oaicite:2]{index=2}

Share prices fell over 5% on the day of the resignation announcement. :contentReference[oaicite:3]{index=3}
Over two days of trading after the news, the stock lost nearly ₹1 trillion in market value amid selling pressure. :contentReference[oaicite:4]{index=4}
Investors and analysts noted an expanded valuation discount compared with peers, reflecting concerns over governance clarity and CEO succession. :contentReference[oaicite:5]{index=5}

Analyst Views and Outlook

Market watchers emphasize that leadership clarity and communication from the board are key to restoring confidence. The appointment of veteran banker Keki Mistry as interim chairman is seen as a stabilizing move, but near‑term volatility could continue until governance questions are resolved and investor certainty improves. :contentReference[oaicite:6]{index=6}

Conclusion

HDFC Bank’s long‑term share performance prior to the recent turmoil was strong, driven by fundamentals and strategic growth. However, the geopolitical climate, management changes, and investor perception of governance matters have combined to create short‑term weakness in the stock. Future performance will likely hinge on leadership stability, macroeconomic conditions, and continued business execution.

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