HDFC Bank shares slide after chairman quits and AT-1 bond firings

HDFC Bank shares fell further after part-time chairman and independent director Atanu Chakraborty resigned, raising fresh governance concerns. On Monday, the stock dropped to ₹756.30, down more than 3% from ₹780.45, and traded around ₹757.60—about 9.55% lower over the past five sessions. The Reserve Bank of India approved Keki Mistry as interim part-time chairman for three months from March 19. During this period, the board will decide the next full-time, non-executive chairman or an independent director. Chakraborty said “certain happenings and practices” he observed over the last two years no longer matched his personal values and ethics. Separately, HDFC Bank fired three senior employees tied to alleged mis-selling of high-risk AT-1 bonds issued by Credit Suisse. Reports say some customers in the bank’s Dubai and Bahrain branches were sold the instruments as fixed-maturity products with assured returns, despite the bonds having write-off risk during the UBS-led Credit Suisse bailout. HDFC Bank said it found gaps in client onboarding requirements at its DIFC branch in the UAE, completed a review, and took remedial and conduct-regulation actions. For traders, the near-term focus is likely to stay on further fallout from the AT-1 controversy and any incremental regulatory or legal developments. Governance headlines and potential compliance scrutiny can keep risk appetite for Indian financial stocks subdued, indirectly affecting broader market sentiment.