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HDFC Bank shares fall after governance concerns and CEO succession worries
The stock dropped more than 1% to ₹730.20 on NSE, while core metrics like capital adequacy of 19.6% and GNPA of 1.17% held up in Q1 FY27.
HDFC Bank shares fell again on Thursday, slipping more than 1% to ₹730.20 on NSE after a sharp decline that has taken the stock down more than 25% year-to-date and nearly 33% from its 52-week high of ₹1,020, according to LiveMint Markets.
The outlet linked the selloff to a cluster of governance and leadership issues cited by analysts, including the early resignation of former chairman Atanu Chakraborty, questions around management stability after the MD and CEO declined an extension, and reported scrutiny over sales practices and wealth product mis-selling at overseas branches.
LiveMint Markets also pointed to an internal inquiry into alleged “business overreach,” where marketing budgets were reportedly used for indirect discounts to help meet aggressive deposit targets, adding to concerns for investors.
Despite the market pressure, the same report said Q1 FY27 fundamentals remained strong, with total deposits rising 14.7% year-over-year to over ₹31.7 lakh crore, GNPA at 1.17%, NNPA at 0.41%, capital adequacy at 19.6%, and PAT of ₹19,060 crore.
The bank has not yet named its next managing director and CEO, though its board has already sent two candidates to the Reserve Bank of India for approval for a three-year tenure, with the candidates’ names not disclosed publicly, the outlet said.