HDFC Bank dismissed allegations linked to alleged payment irregularities involving Rs 45 crore, saying assumptions of wrongdoing based on selective material were misplaced and that all matters are handled in accordance with established internal processes.
The private lender asserted that the bank follows robust internal oversight, audit and control processes.
“We strongly reject any assumptions of wrongdoing or culpability based on selective material. All issues are dealt with in accordance with established norms, and full process is always followed before final determination post any internal review,” an HDFC Bank spokesperson said.
The clarification came after reports alleged that the bank’s Audit Committee of the Board (ACB) had ordered a formal internal vigilance investigation into payments worth Rs 45 crore made to the Maharashtra State Road Development Corporation (MSRDC) during FY2024 and FY2025.
According to the report, the payments were allegedly linked to differential interest offered on deposits maintained by MSRDC with the bank.
It further claimed that instead of directly crediting the amount as interest payments to the state agency, the funds were allegedly routed through the bank’s marketing department and shown as contributions towards a road safety awareness campaign through four local vendors.
The report also alleged that the arrangement was discussed at senior management levels in the presence of HDFC Bank Managing Director and CEO Sashidhar Jagdishan.
The report had also linked the matter to the resignation of the bank’s former non-executive chairman Atanu Chakraborty on March 18.
Chakraborty had stepped down citing differences over values and ethics, though the bank management had stated that it was not informed of any specific concerns despite repeated requests.
Following his resignation, Keki Mistry was appointed interim chairman and had maintained that the bank’s governance and operations remained stable.
Earlier in March, the Reserve Bank of India had said there were no material concerns regarding HDFC Bank’s governance or conduct.
The developments had weighed on investor sentiment, with shares of HDFC Bank falling nearly 2.5 per cent during intra-day trade on the NSE.
Around 2:11 p.m., the shares were declined by Rs 18.75 or 2.41 per cent to trade at Rs 760.15.
