The shares of heavyweight HDFC Bank have seen a sharp downturn, falling around 20% so far this year as governance worries kept its 42 lakh shareholders on the edge. As India’s private lender addresses concerns, analysts explained why fresh entry by only fishing for a bottom should be avoided.
HDFC Bank shares saw a sharp selloff in March this year after its former part-time Chairman Atanu Chakraborty resigned, stating that some practices within the bank were not matching with his personal values and ethics. "Certain happenings and practices within the bank that I have observed over the last two years are not in congruence with my personal values and ethics. This is the basis of my aforementioned decision. I confirm that there are no other material reasons for my resignation other than those stated above," Chakraborty wrote in his resignation letter.
