Shares of HDFC Bank saw a sharp sell-off in March this year after its former part-time chairman Atanu Chakraborty resigned, saying certain practices at the bank did not match his personal values and ethics. “Certain incidents and practices within the Bank which I have observed in the last two years are not in line with my personal values and ethics. This is the basis of my above decision. I confirm that there are no material reasons for my resignation other than those mentioned above,” Chakraborty wrote in his resignation letter.
The stock fell 12% in the three days following his resignation on March 18, sparking a massive share sell-off that took nearly Rs. 1.6 lakh crore was destroyed. The private lender then took several steps to address the concerns.
HDFC Bank recently appointed former IAS officer and former Chief Election Commissioner of India Rajeev Kumar as its part-time (non-executive) chairman, completing a months-long search after the sudden exit of Atanu Chakraborty in March.
Also Read: Sandeep Sabharwal says HDFC Bank’s valuations are attractive, banking sector poised for next growth phase
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HDFC Bank also announced on Monday that its board has approved the appointment of Puneet Sharma as Chief Financial Officer – Designate (CFO-Designate) with effect from September 1 and as Chief Financial Officer from December 1.
India’s largest private lender by both assets and market capitalization also appointed Jigar Shah as General Counsel. He is currently Managing Director and Head of Compliance at the local subsidiary of bulge-bracket private equity firm KKR.
Also read: HDFC Bank ropes in KKR Managing Director Jigar Shah as Head of Legal & Compliance
Should you buy HDFC Bank shares now?
HDFC Bank has strengthened its leadership team with the appointment of Puneet Sharma as CFO-designate and Rajeev Kumar as part-time chairman, said Gnanada Vaidya, research analyst, BFSI at Axis Direct. The reappointment of the current MD CEO is a key oversight and will ensure seamless strategy execution, she added.
“Operationally, HDFC Bank’s growth has picked up as it exits FY26, and the bank is well positioned to sustain a healthy growth trajectory, supported by steady momentum across segments. Amid limited opportunities for NIM expansion, the bank’s focus remains on improving ROA by leveraging investments to maintain credit quality and support credit quality metrics,” the analyst said.
An independent legal review commissioned by the board found nothing to support the allegations, the RBI has not indicated any material governance concerns, a new part-time chairman is in place, and the way has been cleared for the chief executive’s reappointment before the end of his October term, Harshal Dasani, business head at INVasset PMS, highlighted.
Axis Direct currently continues to favor large banks due to good growth and earnings visibility and attractive valuation. However, Gyanada Vaidya currently does not recommend new entrants to HDFC Bank and prefers ICICI Bank and Kotak Mahindra Bank.
“The relevant question is not the timing of the bottom but whether the discount is justified by the franchise, and the current numbers are hard to argue with. The setup is more settled if the redeployment is formally ratified and no new revelations emerge; if the regulatory follow-through on the Dubai matter expands, it remains limited. Currently, the target is selling at Rs 4-9 next to Rs 10. range against a price close to Rs 800,” according to Dasani.
Also read: Shrinkage in finance function of private banks, 2 CFOs resign
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