New Delhi, March 19 -- Shares of HDFC Bank saw a major selloff, plunging over 8% to a 52-week low of Rs.772 on Thursday, March 19, after an unexpected leadership change raised concerns about governance and internal practices at the country's largest private-sector lender.

The bank announced that its part-time Chairman and independent director, Atanu Chakraborty, has stepped down from his role. In the interim, Keki Mistry has been appointed as part-time Chairman for a period of three months, with the approval of the Reserve Bank of India.

Investor sentiment appeared to weaken following the development. The bank's American Depositary Receipts (ADRs) fell sharply, more than 7% overnight, to $26.62.

The stock has already been under pressur...