Banking Sector Alert: Management & Governance Now Bigger Threat Than NPAs

• Indian banking sector shifts focus from bad loans (NPA) to governance, management, and leadership as primary concerns.
• Nifty Bank index fell 9.88% in three months; HDFC Bank shares declined 21% after part-time chairman Atanu Chakraborty's resignation.
• Chakraborty cited practices against his values; HDFC Bank's market valuation dropped by approximately 87,000 crore rupees.
• Experts note an increase in senior official resignations in private banks due to management changes and governance issues.
• Cases of fraud at IDFC First Bank and irregularities at Kotak Mahindra Bank and IndusInd Bank highlight sector pressure.