HDFC Bank’s board has concluded its internal review into the bank’s arrangement with the Maharashtra State Road Development Corporation (MSRDC) for garnering deposits in 2017 and 2021, holding that the actions of employees involved amounted to “business overreach” rather than any mala fide conduct, personal enrichment or improper motive.
“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,” said HDFC Bank in its exchange filing.
Acting on the recommendations of a Special Disciplinary Committee of Independent Directors, the board at its July 23 meeting imposed warning letters and a monetary penalty of ₹1 lakh each on three senior executives — Managing Director & CEO, Chief Financial Officer and Group Head–Retail Assets. The remaining employees involved have been issued warning letters.
The bank said the disciplinary action was taken while keeping in view “any potential divergence with the applicable RBI Directions.” It added that the board has directed the matter to be communicated to the Reserve Bank of India.
In a stock exchange filing on Monday, HDFC Bank said the disclosure was being made from a “good governance perspective” and clarified that the matter does not trigger any disclosure obligation under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The filing follows the bank’s earlier disclosure on the matter made on May 28, 2026, which said, “We wish to state that in line with the highest corporate governance standards of the Bank, the Internal Audit function conducts reviews, identifies and presents its observations from time to time. As such, the observations of the Internal Audit function are comprehensively addressed by the Bank, and that applies to the matter in question.”
