HDFC Bank in its April 4, 2026, update reported a steady rise in business volumes for the March quarter, with both advances and deposits registering double-digit year-on-year growth.
The bank reported continued business momentum, with advances under management at ₹30.58 lakh crore, up 10.2% year-on-year, and deposits at ₹31.06 lakh crore rising 14.4%, according to its provisional update filed with exchanges.
The figures indicated steady growth and no visible disruption in operations following the chairman’s resignation, sustaining the trajectory seen in the previous quarter.
Following the update, a report by InGovern Research Services Pvt Ltd said the recent leadership change — involvoing the resignation of part-time chairman Atanu Chakraborty — at HDFC Bank does not raise broader governance concerns, describing the episode as “one man’s values dilemma” rather than a systemic issue.
It highlighted that the Reserve Bank of India has reaffirmed the lender’s status as a domestic systemically important bank (D-SIB), citing sound financials, a professional board, and adequate capital and liquidity.
“The chairman’s resignation of 18th March 2026 led to a panic among shareholders as the resignation letter triggered governance conversations relating to the bank. The bank continues to report good financial results, and this seems to be a one-off aberration and a personality driven issue,” said Shriram Subramanian, the MD and Founder of InGovern.
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According to the analysis, the bank’s response — including leadership continuity, external review, and clear communication — aligns with global best practices in handling senior-level exits. It added that the institution appears to be leaning towards transparency rather than defensiveness, signalling confidence in its internal processes.
The report also underscored the resilience of the bank’s deposit franchise and strong momentum in lending, noting that earnings growth and dividend payouts remain well-supported by a low-risk balance sheet and stable profitability outlook.
It further said the current situation is unlikely to materially impact shareholder value, with profitability expected to remain insulated from sudden credit-cost shocks. The board structure and senior management were described as stable and consistent with global standards for large banks, with clearly defined leadership roles under the CEO.
However, the report flagged key triggers to monitor, including the outcome of the external review, any further leadership changes, and potential regulatory developments.
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Subramanian added, “The bank should quickly put out the findings by the external lawyers with the review outcomes. The bank should also continue its practices by regular investor engagement and disclosures.”
Shares of HDFC Bank ended 1.78% (₹14.45) lower at ₹795.45 on the NSE today, April 16.
