My view on developments at HDFC Bank:-
HDFC Bank has lived on pristine corporate governance,
The chairman, even though an executive,
Giving such remarks isn't something small,
If there were disagreements at the board level(As sme reports suggest),
The management should have addressed them and made changes.
HDFC Bank is a systemically important bank,
RBI audits them at a very minute level,
Such things blowing out into a resignation is a complete failure of the management,
Now,
The management must communicate effectively with the investor community,
They must tell the investors about the problems that led to the Chairman's resignation and steps taken to address the issues,
Over the last 2 years,
HDFC bank has been poor in communication with investors,
The extent of communitcation will decide how the investors nerves are calmed,
This is not good for HDFC Bank in the short term,
However in the longer term the bank is too strong,
But the management must take agreesive role of guideing the investors now!