By Admin 
HDFC Bank: Shares of HDFC Bank, the largest private sector bank in the country, are in bad shape today. As soon as the market opened today, the bank’s shares fell by 9 percent to its new 52-week low of Rs 770. Due to this huge fall in shares, approximately Rs 1 lakh crore was wiped off the market cap of the bank. Apart from this, the ADR (American Depositary Receipt) of HDFC Bank listed in the American market also declined by more than 7 percent overnight.
Bank assured investors
This fall in shares came after the sudden resignation of HDFC Bank Chairman Atanu Chakraborty on March 18. In his resignation letter, he talked about the lack of coordination between the functioning of the bank and its ethical values. His statement created panic among the investors, due to which the shares came under selling pressure.
Meanwhile, HDFC Bank Director Keki Mistry and MD & CEO Sashidhar Jagdishan assured investors and media in a conference call today that the resignation of board member Manoj Chakraborty will not have any impact on the profitability or functioning of the bank.
What else did the bank say?
Keki Mistry also said, “The auditing of the bank by RBI has been completed. The Risk Management System is very strong.” CEO Sashidhar Jagdishan said the board had no knowledge of the issues raised in Chakraborty’s letter. On the resignation of the chairman, Jagdishan said that if his values did not match with the values of the bank, he would never have taken this post.
He assured the investors that the stability in business is the same as before. No change in Execution Capability. Focus will continue on Governance, Integrity and Value Creation. The strategic direction and priorities are completely the same.
What did RBI say?
Let us tell you that RBI has confirmed that as per their records, there is no serious deficiency in the functioning or governance of the bank. The financial condition of the bank is also satisfactory. It also has adequate amount of liquidity.
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