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HDFC Bank Share Price: Shares of HDFC Bank today declined by 3.26 per cent or Rs 25.45 to close at Rs 756.25. The dip in the shares of the private lender came amid reports of major global leading brokerage Jefferies exiting its holdings in HDFC Bank.
With this, the international brokerage also reduced its India exposure across key portfolios. The decision came following the resignation of the HDFC Bank’s part-time chairman, Atanu Chakraborty.
Brokerage firm Jefferies exits HDFC Bank
Jefferies strategist Chris Woods, in its latest “Greed & Fear” report, stated that the brokerage has removed HDFC Bank from its Asia ex-Japan long-only equity portfolio, global long-only equity portfolio, and international long-only equity portfolio (ex-USA).
The report, however, did not provide any specific reason behind the exit from the private sector lender.
HDFC Bank replaced by HSBC
Instead, the brokerage has added HSBC with a 4 per cent weighting in these portfolios, replacing HDFC Bank. The move has also resulted in a marginal reduction in India’s overall weightage.
Jefferies further indicated changes in its Asia Pacific ex-Japan relative-return portfolio, reducing exposure to India and Australia by two percentage points each, while increasing Taiwan’s weight by four percentage points.
Currently, India’s weight in Jefferies’ Asia Pacific ex-Japan allocation stands at 13 per cent, slightly above the MSCI benchmark.
HDFC Bank part-time Chairman Atanu Chakraborty’s resignation
The significant developments come after HDFC Bank disclosed on March 18 that its part-time chairman, Atanu Chakraborty, had resigned, citing differences with the bank over “values and ethics”. The private lender subsequently appointed Keki Mistry as interim part-time chairman.
Earlier, the bank had appointed law firms to review the exit of Chakraborty.
In his resignation letter, Chakraborty referred to certain practices within the bank that were “not in congruence” with his personal values, without elaborating further.
Analysts flagged potential sentiment concerns. Anuj Singla of JPMorgan said that while no specific misconduct has been alleged, the perception could weigh on investor sentiment and increase governance risk premium on the stock.
HDFC Bank Share Price History
Shares of HDFC Bank have declined 3.10 per cent in the past one week. Similarly, the shares were down by 14.78 per cent in one month, 23.80 per cent in three months and 19.99 per cent in six months, respectively.
On a year-to-date basis, the stock is down 23.67 per cent.
(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.)
