HDFC Bank board finds 'business overreach', fines CEO and CFO Rs 1 lakh each
Mumbai, July 27 : HDFC Bank on Monday said its board has issued warning letters and imposed a monetary penalty of Rs 1 lakh each on Managing Director and Chief Executive Officer Sashidhar Jagdishan, Chief Financial Officer Srinivasan Vaidyanathan and Group Head – Retail Assets Arvind Vohra following the conclusion of an internal review into the bank's deposit arrangements with the Maharashtra State Road Development Corporation (MSRDC).
The action follows the findings of a Special Disciplinary Committee of Independent Directors, which examined the bank's arrangements with the state-owned corporation for mobilising deposits in 2017 and 2021.
In a regulatory filing, the country's largest private sector lender said the board, at its meeting held on July 23, concluded that the conduct of the employees involved amounted to business overreach rather than any mala fide action, personal enrichment or improper motive.
“The bank today announces conclusion of an internal review process pertaining to the arrangement with Maharashtra State Road Development Corporation (MSRDC) for garnering deposits in 2017 and 2021,” the private lender stated.
“Based on the findings and recommendation of the Special Disciplinary Committee of Independent Directors, the Board at its meeting held on July 23, 2026, concluded that the conduct of the employees involved constituted business overreach rather than any mala fide action, personal enrichment, or improper motive,” HDFC bank noted.
However, the board noted the possibility of divergence from applicable Reserve Bank of India (RBI) directions and, based on the committee's recommendations, decided to issue warning letters and levy a monetary penalty of Rs 1 lakh each on the bank's MD & CEO, CFO and Group Head – Retail Assets. Warning letters were issued to the remaining employees involved in the matter.
The board also directed that the outcome of the review be communicated to the RBI.
“The board decided to issue warning letters and monetary penalty of Rs 1 lakh for three senior employees (the Managing Director & CEO, Chief Financial Officer and Group Head – Retail Assets), and warning letters for the remaining employees,” the lender mentioned.
The action follows the findings of a Special Disciplinary Committee of Independent Directors, which examined the bank's arrangements with the state-owned corporation for mobilising deposits in 2017 and 2021.
In a regulatory filing, the country's largest private sector lender said the board, at its meeting held on July 23, concluded that the conduct of the employees involved amounted to business overreach rather than any mala fide action, personal enrichment or improper motive.
“The bank today announces conclusion of an internal review process pertaining to the arrangement with Maharashtra State Road Development Corporation (MSRDC) for garnering deposits in 2017 and 2021,” the private lender stated.
“Based on the findings and recommendation of the Special Disciplinary Committee of Independent Directors, the Board at its meeting held on July 23, 2026, concluded that the conduct of the employees involved constituted business overreach rather than any mala fide action, personal enrichment, or improper motive,” HDFC bank noted.
However, the board noted the possibility of divergence from applicable Reserve Bank of India (RBI) directions and, based on the committee's recommendations, decided to issue warning letters and levy a monetary penalty of Rs 1 lakh each on the bank's MD & CEO, CFO and Group Head – Retail Assets. Warning letters were issued to the remaining employees involved in the matter.
The board also directed that the outcome of the review be communicated to the RBI.
“The board decided to issue warning letters and monetary penalty of Rs 1 lakh for three senior employees (the Managing Director & CEO, Chief Financial Officer and Group Head – Retail Assets), and warning letters for the remaining employees,” the lender mentioned.
