HDFC Bank shares crashed 8% to hit the 52-week low in early morning trade today, following the sudden resignation of Atanu Chakraborty. The stock is down 9% in March so far and on track for the worst monthly fall in 6 years.

RBI finds no material concerns in HDFC Bank’s governance despite part-time chairman’s resignation over ethics differences.

The board of HDFC Bank, including group veteran and interim part-time chairman Keki Mistry, sought to allay investor concerns on Thursday after the former chairman Atanu Chakraborty resigned with immediate effect a few hours earlier, citing ethical concerns.

Shares of HDFC Bank tumbled to their 52-week low during early trade on Thursday as markets reacted sharply to Atanu Chakraborty's surprise resignation.

Brokerages remain positive on HDFC Bank Ltd despite the recent sharp correction and the resignation of chairman Atanu Chakraborty, saying the development may impact sentiment in the near term but does not alter the bank’s fundamentals.

Most companies in the Nifty 50 Index have retreated this year. Bajaj Finance stock has dropped by 20% in the last 30 days, while Larsen & Toubro, Tata Motors, Eternal Limited, Maruti Suzuki, Bajaj Finserv, HDFC, and Eicher Motors have dropped by over 15% in the last 30 days.

India's financial markets are navigating a perfect storm. HDFC Bank's chairman's exit and rising oil prices create uncertainty. Expert Gurmeet Chadha advises a nuanced approach. He sees HDFC Bank's issues as communication-related,

HDFC Bank management said the RBI approved the interim chairmanship in an exceptionally short timeframe, which the lender viewed as a strong signal of regulatory confidence in the institution.