HDFC Bank Reports Steady Growth Amid Leadership Changes

HDFC Bank has announced a steady increase in its business volumes for the quarter ending March 2026. According to the provisional update shared with exchanges on April 4, both advances and deposits have shown double-digit growth year-on-year. The bank reported its advances under management reaching ₹30.58 lakh crore, marking a rise of 10.2%. Similarly, deposits grew to ₹31.06 lakh crore, an increase of 14.4%. This growth trend suggests that the bank continues to perform well without significant disruptions following the resignation of its part-time chairman.

In a report by InGovern Research Services Pvt Ltd, the recent leadership transition, namely the resignation of Atanu Chakraborty, is characterised as an isolated issue rather than one that raises broader governance concerns. The report referred to it as “one man’s values dilemma” and not a systemic concern for the bank. Furthermore, the Reserve Bank of India reaffirmed HDFC Bank’s status as a domestic systemically important bank, citing its solid financial fundamentals, capable board, and sufficient capital and liquidity resources.

“The chairman’s resignation on March 18, 2026, caused considerable anxiety among shareholders, sparking discussions about governance practices related to the bank,” said Shriram Subramanian, the Managing Director and Founder of InGovern. He added that despite this leadership change, HDFC Bank continues to report favourable financial results, indicating that the matter appears to be a one-off incident rather than indicative of ongoing issues.

The report commended the bank for its response to the leadership change, noting that its approach reflects global best practices in addressing senior-level departures. Observations included leadership continuity, initiation of an external review, and clarity in communication, all highlighting the bank’s commitment to transparency amid challenges.

InGovern further noted that HDFC Bank's strong deposit franchise and lending momentum support solid earnings growth and stable dividend payouts. The bank’s low-risk balance sheet is expected to shield profitability from unexpected credit-cost fluctuations. Both the board structure and senior management were praised for their stability and adherence to global standards for large banking institutions, ensuring clear leadership roles are defined under the Chief Executive Officer.

Nevertheless, the report indicated areas that require ongoing scrutiny, such as the outcomes of the external review, potential subsequent leadership changes, and regulatory developments. “The bank should promptly disclose the findings of the external review and continue its engagement and communication with investors,” Subramanian remarked.

On April 16, shares of HDFC Bank declined by 1.78%, closing at ₹795.45 on the National Stock Exchange, following broader investor reactions to recent events.