HDFC Bank CEO and MD, CFO get warning letters, ₹1 lakh penalty for ‘business overreach’ in MSRDC deposits
Private sector lender HDFC Bank on July 27, ₹₹ 1 lakh penalty and warning letters were issued to senior executives – MD and CEO, chief financial officer and Group Chairman – Retail Assets for “overstepping” by employees in relation to deposits of the Maharashtra State Road Development Corporation (MSRDC).
It added that the employee’s conduct was not motivated by “malicious action, personal enrichment or improper motive.”
HDFC Bank, in a filing dated July 27, 2026, filed with the stock exchanges, said the internal review process completed today showed that employees were involved in “excessive scope of work” regarding an agreement with MSRDC to collect deposits in 2017 and 2021.
Fines for senior executives ₹1 lakh, warning letters issued
“Based on the findings and recommendations of the Special Disciplinary Committee of Independent Directors, the Board concluded at its meeting on 23 July that the conduct of the employees concerned constituted overstepping of business rather than any act of bad faith, personal enrichment or improper motive.”
He added that the board issued warning letters and fines. ₹1 lakh for three senior employees (Managing Director and CEO, Chief Financial Officer and Group Head – Retail Assets) and warning letters for the remaining employees. The bank’s Managing Director and CEO is Sashidhar Jagdishan, CFO Srinivasan Vaidyanathan and Group Head of Retail Assets Arvind Vohra.
The decision was taken “taking into account any possible divergence with prevailing RBI instructions and based on the recommendations of the Special Disciplinary Committee of Independent Directors”.
He also added that the central bank and regulatory authority, the Reserve Bank of India (RBI), has also been informed about the same.
HDFC Bank stock price takes a hit
The lender’s share price fell over 2% last week (Wednesday, July 22) following a media report about the lender’s internal vigilance investigation into interest payments. ₹45 crore to a government firm. HDFC Bank shares fell as much as 2.27 percent ₹761.25 per capita on BSE.
Over the past three months, HDFC Bank share price has increased by 3% and is up 11% on a year-to-date (YTD) basis. The stock gained 20% in value in two years and 41% in the last five years.
Earlier, at 10.15 am today, HDFC Bank share price was trading 1.90% down. ₹764.20 per capita on BSE. It closed at 740.20 per person.
