HDFC Bank’s Covid plunge to earnings disappointment: 5 biggest single-day stock crashes since 2020

HDFC Bank shares tumbled nearly 9% to open at Rs 770 apiece on Thursday amid leadership worries after part-time Chairman and independent director Atanu Chakraborty stepped down, stating that he observed certain practices at the company over the last two years that did not align with his personal values and ethics. Keki Mistry, meanwhile, has been appointed as an interim part-time Chairman for a period of three months, as approved by the RBI.

Let’s look at the five worst single-day crashes the stock has seen since 2020.

The infamous March 2020 crash

HDFC Bank saw one of the worst monthly performances in March 2020 when the stock declined 27% in just one month as India braced for what turned out to be a very long season of lockdown and economic slowdown due to the COVID-19 pandemic. The stock plunged more than 8% on March 12 and around 10% on March 18 that year. The final blow that month was the 13% crash recorded on March 23 as the Indian government imposed a nationwide lockdown in order to curb the spread of the virus.

Also read: ‘A buy-on-dips pick’: Why HDFC Bank is getting backing from analysts despite management blip

As a result of the lockdown, the bank later in April said that its loan origination, distribution of third-party products and collections were impacted. The infamous selloff spooked investors, but the losses were soon reversed. By October 2020, the shares of the private lender were back at pre-March levels.

Earnings disappointment in 2024

Later on January 17, 2024, HDFC Bank shares dropped 8.5% as several brokerages reduced their target prices following disappointment in the December quarter results. HDFC Bank’s Q3 FY25 beat in profit (up 33% YoY to Rs 16,373 crore) was driven mainly by a one-off write-back of Rs 1,500 crore of tax provisions. In the analyst call, the company management alluded to continued competitive pressures on deposit growth given tight liquidity.

The bulls had claimed that HDFC Bank shares were at “mouth-watering” levels. Investors who listened did indeed make strong gains, as the bank soon recovered all losses and rallied around 33% to hit a 52-week high of Rs 1,020 in October 2025.

Part-time Chairman’s exit in 2026

Today marks the fifth instance in over six years when the stock has crashed more than 8%. The stock, however, recovered some losses after RBI said there are no material concerns regarding the lender’s governance or conduct. “We confirm that there are no reasons other than those mentioned in the said letter, for the resignation of Mr Chakraborty,” the lender clarified.

Also read: Rs 1 lakh crore wiped off! HDFC Bank shares slump 9%, set to record worst day since Covid crash

However, if the stock fails to hold on to the partial recovery and closes near the opening level, then today will mark one of the worst single-day falls recorded by the stock since 2020.

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