Newly issued dollar bonds by HDFC Bank Ltd., India’s most valuable lender, slid to record lows on Tuesday as Chief Executive Officer Sashidhar Jagdishan’s unexpected decision to step down continued to weigh on investor sentiment. Notes of the Mumbai-based lender fell for a fifth straight session as the lender confronts a slew of issues that have placed its governance practices under intense scrutiny recently. Shares of HDFC, which has a market capitalization of $116 billion, have also underperformed the broader Indian market.

The bond decline reflects growing concerns over leadership stability and regulatory oversight at one of India’s flagship financial institutions. Analysts note that the exit has intensified pressure on the bank to restore confidence amid ongoing scrutiny of its board and risk management frameworks. The situation underscores the sensitivity of fixed-income markets to executive transitions in major emerging-market banks.