Shares of HDFC Bank Ltd fell as much as 1.6 per cent to Rs 2,080, its lowest since July 4 as the lender had said on Friday that its Deputy Managing Director, Paresh Sukthankar, had resigned and will vacate his post in 90 days.

The resignation comes after the bank said in June it was seeking shareholders' nod for re-appointing Sukthankar as Deputy MD.

“We hereby inform you that Paresh Sukthankar has tendered his resignation as Deputy Managing Director of the bank, to be effective 90 days from the close of business hours of today,” HDFC Bank had said in a regulatory filing.

The bank said its board of directors places on record its appreciation for the contribution made by Sukthankar in his long association with the bank.

“Do not see any near-term concerns to business given the strength of the senior management team but it does appear that the successor is most likely an external candidate. We maintain our 'reduce' rating given the current valuations and preference for corporate banks,” says Kotak Securities.

“From HDFC Bank stock perspective, Sukthankar's resignation is a mild negative in the near term but the bank had built strong leadership and hence we do not expect any material change in the multiple for the bank,” says Nomura.

HDFC Bank stock has risen 12.9 per cent this year as of last close.

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