HDFC Bank Shares Rise 3% After Governance Review, End Four-Day Losing Streak

HDFC Bank shares gained 3% in early trade on March 24, reversing a four-day losing streak after the lender disclosed steps to review governance concerns linked to the resignation of its former chairman.

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The stock opened at ₹755 compared to the previous close of ₹744.15 on March 23. The rebound follows a sharp decline of over 12% across the last four sessions prior to Tuesday, according to exchange data.

External Review Initiated

In a regulatory filing dated March 23, the bank said it has appointed external law firms to examine the resignation letter submitted by its part-time chairman Atanu Chakraborty. The bank added that the law firms have been asked to submit their findings within a reasonable timeframe.

Chakraborty stepped down from his position as part-time chairman and independent director on March 18. In his resignation letter, he cited differences with the board and referred to certain developments and practices over the past two years that were not aligned with his personal values and ethics.

Clarification On Internal Actions

Separately, the bank issued a clarification on March 23 regarding the termination of three employees. The lender stated that the action followed an internal investigation linked to a regulatory notice issued on September 25, 2025, by the Dubai Financial Services Authority (DFSA) to its branch in the Dubai International Financial Centre.

According to the bank’s filing, its Governance, Nomination and Remuneration Committee initiated a probe under its conduct regulations. The investigating officer submitted findings to the disciplinary committee, which then recommended accountability measures. These recommendations were approved by the committee during its meeting held on March 9.

The bank further stated that the terminated employees have the option to appeal the decision before the Appellate Authority, which is the board of directors.

Stock Movement And Market Reaction

The upward movement in the share price comes after the bank addressed both the chairman’s resignation and the employee-related action through formal disclosures. The developments were communicated to stock exchanges as part of compliance requirements.

This stock’s gain on March 24 follows a sustained decline and is a reaction to the immediate market response to the disclosures by the lender.

The bank’s announcement provides details on the actions that the bank has taken under its internal governance process and regulatory process, with additional information to be provided once the external review is complete.