01 — Opening Hook
The 2-Month Plot Twist Nobody Saw Coming
On January 17, 2026, HDFC Bank’s management hosted a Saturday earnings call. Profits up 7%. Deposits growing 18%. Credit quality pristine. CD ratio glide path on track. Management was confident. Investors were satisfied. Then two months of silence. No red flags. No warnings. Then March 18 evening: the Chairman walks out citing “values and ethics,” and within hours an emergency call is convened where the board admits they don’t know why he left. The operational fundamentals? Still solid. The governance? Cosmically broken.
This is that story: How one bank went from “everything is fine” to “we have no idea what happened” without a single operational mishap in between.
02 — The Earnings Story (Jan 17)
When Everything Was Perfect on Paper
Q3 FY26 Numbers
₹20,691 Cr PAT
+12.2% QoQ. The machine was humming.
Deposit Growth
+18.2% YoY
Granular retail booming. Bulk deposits managed tactically.
Credit Quality
Pristine
Slippages ex-agri: 24 bps. Decadal lows on NPA accretion.
CD Ratio Target
85-90% FY27
From 95-96% in FY26. “Confident,” said management.
Branch Productivity
₹305 Cr/Branch
Up from ₹237 Cr five years ago despite expansion.
Asset Quality
No Stress
No particular portfolio showing signs of concern.
The Setup: Operationally, this bank was firing on all cylinders. Profits. Growth. Credit quality. Management confidence. All aligned. Then everything exploded on the governance side.
03 — Management’s January Confidence
What They Said (When Everything Was Fine)
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