Why Did $HDFCBANK Shares Fall Despite Strong Fundamentals?

Shares of HDFC Bank fell over 2% after reports emerged about an internal vigilance investigation into alleged “camouflaged” payments worth ₹45 crore linked to deposits from the Maharashtra State Road Development Corporation (MSRDC). The payments were reportedly routed through the bank’s marketing department and shown as expenses for a road safety awareness campaign instead of direct interest payments. According to reports, HDFC Bank’s Audit Committee ordered the probe on March 12 following concerns raised during an internal audit review. The issue gained further attention after former chairman Atanu Chakraborty resigned in March, citing practices not aligned with his personal values and ethics. The bank, however, strongly denied any wrongdoing and stated that it follows robust internal oversight, audit and compliance processes. HDFC Bank said all matters are handled according to established norms before any final conclusions are drawn. The stock declined nearly 2.5% intraday, making it one of the worst-performing banking stocks of the session amid rising investor concerns around governance and internal controls