HDFCBANK

HDFC Bank shares declined in morning trade on Tuesday after the private sector lender disclosed that its board had imposed monetary penalties on three senior executives following an internal review of the bank's deposit arrangement with the Maharashtra State Road Development Corporation (MSRDC). In a stock exchange filing dated July 27, the bank said Managing Director and Chief Executive Officer Sashidhar Jagdishan, Chief Financial Officer Srinivasan Vaidyanathan, and Group Head (Retail Assets) Arvind Vohra were each fined Rs 1 lakh. The penalties were imposed on the recommendation of the board after reviewing the bank's arrangements with MSRDC to mobilise deposits in 2017 and 2021. The bank said the Special Disciplinary Committee of Independent Directors did not find any conclusive evidence of mala fide conduct, personal enrichment, or improper motive by the executives. However, it concluded that the conduct of the employees involved amounted to "business overreach." The review follows media reports published in May alleging that HDFC Bank paid Rs 45 crore to MSRDC to secure large deposits. The reports claimed the payments were recorded as "marketing spends" and alleged that Jagdishan was aware of the transactions. HDFC Bank had denied the allegations, stating that it maintains robust internal oversight, audit, and control mechanisms and that all matters are handled in accordance with its established governance and compliance processes.