HDFC Bank on Thursday sought to reassure investors and stakeholders after its locally listed stock slumped the most intraday since the first Covid week, asserting that there are no material issues at the bank where the non-executive chair abruptly exited last night after citing ‘ethical’ misalignment with the management.
“On behalf of the board and in full alignment with the executive leadership, I wish to assure all stakeholders that there are no material matters at this point in time,” said Keki Mistry, interim chairman of HDFC Bank, during a media call.
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Mistry added that despite repeated requests from board members, exiting chairman Atanu Chakraborty did not specify any concerns that prompted him to exit 14 months before the end of his second term.
The incoming interim chairman, a veteran at the mortgage lender Housing Development Finance Corp, the erstwhile parent of the lender, stressed his personal commitment to help rebuild trust in a bank that has the second-biggest depositor base in the country.
“At the age of 71, I would not have taken on this responsibility if the bank’s governance standards and ethos were not aligned with my values,” Mistry said.
He added that relationship issues could have played a role in the abrupt exit of his predecessor. “I think, to my mind, there could be a relationship issue between him and the management. That may have manifested over a period of time.”
HDFC Bank’s stock slumped 5.13% to close at Rs 799 per share, having plunged to Rs 770 apiece early morning.
‘Robust’ Credentials The Centre, meanwhile, stressed the lender’s fundamentals to demonstrate its alignment with the satisfactory regulatory view on the bank, the biggest by market value.
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“HDFC Bank is a strong institution with strong fundamentals,” Financial services Secretary M Nagaraju said, adding that the banking regulator had already issued a statement on its assessment of the lender.
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