HDFC Bank shares plunged over five percent after chairman Atanu Chakraborty abruptly resigned citing ethical misalignment with management.

HDFC Bank shares plunged over five percent after chairman Atanu Chakraborty abruptly resigned citing ethical misalignment with management. The unexpected exit marked the stock's worst intraday performance since the Covid crisis. Interim chairman Keki Mistry immediately reassured investors that no material issues exist at India's second-largest deposit base holder. Despite board requests, Chakraborty refused to elaborate on his concerns, with Mistry suggesting relationship tensions may have triggered the departure. The government emphasized the bank's strong fundamentals and regulatory standing. CEO Sashidhar Jagdishan signaled expanded responsibilities for deputy managing director Kaizad Bharucha. The nomination committee will meet within a month to recommend the next managing director and CEO to the Reserve Bank of India, potentially clarifying leadership succession plans.