HDFC Bank’s share price tumbled 8.6 per cent on Thursday to hit a fresh 52-week low of Rs 770, as investor sentiment weakened following the resignation of part-time Chairman Atanu Chakraborty. The stock came under sharp selling pressure after Chakraborty stepped down, citing concerns over certain internal developments that he said were not in alignment with his personal values and ethics, triggering governance-related worries around the country’s largest private lender.
In a conference call that the Bank hosted with analysts and investors on March 19, Keki Mistry, interim Chairman, HDFC Bank said, “I want to emphasise I would not have taken this responsibility at the age of 71 if it did not align with my principles and integrity.”
His remarks came after the outgoing Chairman, Atanu Chakraborty in his resignation letter said, “Certain happenings and practices within the bank, that I have observed over the last two years, are not in congruence with my personal Values and Ethics. This is the basis of my aforementioned decision. I confirm that there are no other material reasons for my resignation other than those stated above.”
The stock has delivered weaker returns than the benchmark Nifty 50 in the short term, reflecting heightened selling pressure. Over the past one week, the stock declined 3.55 per cent, compared with a 1.55 per cent fall in the benchmark index. The underperformance widened over the one-month period, with the stock slipping 12.28 per cent, while the Nifty 50 dropped 8.57 per cent. On a year-to-date basis, the stock is down 18.96 per cent, significantly steeper than the 10.99 per cent decline seen in the index.
Looking at annual performance, the divergence remains visible. Over the last one year, the stock has fallen 7.90 per cent, even as the Nifty 50 posted a modest gain of 1.59 per cent. This indicates sustained relative weakness, with the stock failing to keep pace with broader market recovery phases during the period.
In the past three years, the stock has gained 2.15 per cent, while the Nifty 50 surged 36.10 per cent. Over five years, the stock rose 7.27 per cent, sharply trailing the index’s 57.85 per cent rally, highlighting significant long-term underperformance versus the broader market.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
