HDFC Bank has announced that an external legal review found no evidence in board records or communications to support the concerns raised by former chairman Atanu Chakraborty in his resignation letter.
The lender stated on Friday that the independent assessment cleared the current management of the allegations that triggered Chakraborty's sudden departure, aiming to restore stability after weeks of intense market scrutiny.
Chakraborty's exit wiped out nearly 14% of the bank's market capitalization—approximately $16 billion—in the weeks following his resignation.
The news comes as the bank attempts to stem a significant erosion of shareholder value.
Chakraborty's exit wiped out nearly 14% of the bank's market capitalization—approximately $16 billion—in the weeks following his resignation.
Investors had grown wary of potential governance fractures and regulatory fallout, driving selling pressure that weighed heavily on the stock.
The legal review's conclusion is expected to provide a degree of relief, though the path to full valuation recovery may remain gradual as trust is rebuilt.