HDFC Bank fines three top executives ₹1 lakh each

Private sector lender HDFC Bank has fined its managing director and CEO, chief financial officer and group head of retail assets ₹1 lakh each.

Warning letters were issued to each, and to other employees, who were found to be involved in an arrangement with Maharashtra State Road Development Corporation (MSRDC) for raising deposits from the latter firm in 2017 and 2021.

The committee concluded that their act was “business overreach”, rather than mala fide action, personal enrichment or improper motive. The bank’s actions were based on the findings and recommendation of a “special disciplinary committee of independent directors”, that had gathered to validate if any potential divergence with applicable RBI directions had taken place.

The matter has since been communicated to the Reserve Bank of India.

The Indian Express had reported end May that an investigation by HDFC Bank’s internal vigilance team had highlighted interest payments made by the bank to MSRDC had been camouflaged as marketing expenditure.