Banking

HDFC Bank faced an unexpected governance development as former chairman Atanu Chakraborty stepped down citing ethical concerns, triggering uncertainty among investors and stakeholders. The bank’s leadership, led by CEO Sashidhar Jagdishan, has sought to reassure markets, emphasizing institutional stability and denying any systemic issues. Board members expressed surprise at the resignation, noting the absence of detailed allegations.

Axis Bank has approved a capital infusion of Rs. 1,500 crore into its wholly owned subsidiary, Axis Finance Ltd, through a rights issue to be executed in phases by March 31, 2027. The investment, cleared by the Reserve Bank of India, is aimed at supporting business expansion and strengthening the non-banking financial company’s balance sheet. With growing demand for diversified credit solutions, the move reflects Axis Bank’s strategic emphasis on scaling its NBFC operations to capture emerging lending opportunities and enhance long-term revenue streams.

India’s banking sector has written off loans worth Rs. 9.75 lakh crore over the past 11 financial years, reflecting a prolonged effort to clean up stressed balance sheets. The write-offs peaked in FY20 at Rs. 1.59 lakh crore before gradually declining to Rs. 47,568 crore in FY25. Financial authorities emphasize that loan write-offs do not absolve borrowers of their repayment obligations; banks continue recovery efforts through legal and asset reconstruction mechanisms. 

India’s benchmark equity indices rebounded strongly on Monday after three consecutive sessions of sharp declines, driven by renewed investor interest in blue-chip banking stocks. The BSE Sensex climbed 938.93 points, or 1.26 percent, to close at 75,502.85, while the NSE Nifty rose 257.70 points, or 1.11 percent, ending the day at 23,408.80. Market participants engaged in value-buying after the recent correction, particularly in large-cap companies.