New Delhi, March 27: Global brokerage firm Jefferies has divested its stake in HDFC Bank, reducing its exposure to India across several key portfolios. This decision follows the resignation of the bank’s part-time chairman, Atanu Chakraborty.
In a recent report titled “Greed and Fear,” Jefferies strategist Chris Woods stated that the firm has removed HDFC Bank from its Asia (excluding Japan), Global, and International Long-Only Equity portfolios. However, no specific reasons for this decision were provided.
Jefferies has replaced HDFC Bank with HSBC, assigning it a 4% weight. This change has led to a slight decrease in India’s overall weight in the portfolio.
Additionally, Jefferies has made adjustments in its Asia-Pacific (excluding Japan) portfolio, reducing the weight of India and Australia by 2% each, while increasing Taiwan’s weight by 4%. Currently, India’s share in this portfolio stands at 13%, slightly above the MSCI benchmark.
This development comes after HDFC Bank announced on March 18 that Atanu Chakraborty resigned due to disagreements over “values and ethics.” Following his departure, Keki Mistry was appointed as the interim chairman.
Reports indicate that the bank has engaged law firms to investigate the matter. In his resignation, Chakraborty raised concerns about certain operational practices that did not align with his personal values, although he did not elaborate further.
Experts suggest that this situation could impact investor sentiment. According to Anuj Singhal from JP Morgan, while no wrongdoing has been proven, it may weaken investor confidence and increase pressure on the stock.
Furthermore, reports suggest that the Reserve Bank of India (RBI) may also investigate matters related to this resignation.
Meanwhile, HDFC Bank’s shares fell nearly 3% to ₹758 on the BSE. Over the past month, the bank’s stock has dropped by 14.3%, and it has seen a 20% decline over the last six months. The bank’s 52-week low is ₹741.05, while its high is ₹1,020.50. The current market capitalization stands at ₹5.82 lakh crore.
My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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