HDFC Bank: Why Did Jefferies Sell Its Entire Stake in the Company?

Synopsis: HDFC Bank shares are in focus as Jefferies exited over governance concerns following Atanu Chakraborty’s resignation. Uncertainty, possible SEBI scrutiny, and weak investor sentiment drove the move.

The shares of the Large-Cap company, specialising in providing a comprehensive range of financial products and services, acting as a leading private sector bank in India, are in focus in the day’s trade as Jefferies exits its shares in the company.

With a market capitalization of Rs. 11,70,868.12 Crores on the Day’s Trade, the shares of HDFC Bank Ltd declined by 3 percent, reaching a low of Rs. 758.20 compared to its previous close of Rs. 781.70.

What Happened

HDFC Bank Ltd, engaged in providing a comprehensive range of financial products and services hass been in the spotlight in the day’s trade, as people are still wondering why part-time chairman Atanu Chakraborty suddenly resigned and what might happen next with possible investigations. 

He quit a week ago, saying that some things he had seen at the bank over the past two years “did not match” his personal values and ethics. He didn’t explain further or give any proof, leaving shareholders, investors, and analysts without clear answers.

Chakraborty’s resignation has triggered governance concerns, impacting investor sentiment. HDFC Bank shares fell 3 percent  on the day and have dropped over 14 percent in the past month

According to Reuters sources, a SEBI department responsible for corporate disclosures and governance is reviewing the role of the former chairman and other directors over possible lapses in their fiduciary duties. The examination is to verify claims made in the resignation letter and whether other directors were aware of any material information and did not document it.

Reason for Jefferies Exit

As per sources, Jefferies exited HDFC Bank and reduced its India exposure primarily due to governance concerns following the resignation of part-time chairman and independent director Atanu Chakraborty. 

They replaced HDFC Bank with HSBC in key portfolios, adjusting regional allocations to lower India and Australia weightings while increasing Taiwan slightly, though the strategist Chris Woods did not provide detailed reasoning for the stock-specific exit.

Financials & Others

The company’s revenue rose by 2.38 percent from Rs. 85,040 crores in December 2024 to Rs. 87,067 crores in December 2025. Meanwhile, Net profit rose from Rs. 18,340 crores to Rs. 20,691 crores in the same period.

HDFC Bank reported a Net Interest Income (NII) of Rs 32,620 crore in Q3 FY26, representing a 6.4 percent growth from Rs 30,650 crore in Q3 FY25. Additionally, it recorded a growth of 3.4 percent from its previous quarter figure of Rs 31,550 crore.

The Bank’s asset quality strengthened during the period. GNPA declined by 20 bps to 1.2 percent as compared to 1.4 percent in Q3 FY25. Also, NNPA declined by 10 bps and currently stands at 0.4 percent as compared to 0.5 percent in Q3 FY25. 

HDFC Bank reported a 12.2 percent year-on-year growth in average deposits, reaching Rs. 27,52,400 crore in Q3 FY26 compared to Rs. 24,52,800 crore in Q3 FY25. CASA deposits stood at Rs. 9,61,200 crore, including Rs. 2,99,500 crore in current accounts and Rs. 6,61,700 crore in savings accounts, and CASA made up 34 percent of total deposits as of December 31, 2025.

HDFC Bank is one of India’s largest private sector banks, founded in 1994 and headquartered in Mumbai. It provides a wide range of financial services, including retail banking, wholesale banking, loans, credit cards, and digital banking solutions. Known for its strong customer base and extensive network of branches and ATMs across India, the bank has built a reputation for reliability and efficient service.

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