HDFC Bank CEO and MD, CFO get warning letters, ₹1 lakh penalty for ‘business overreach’ in MSRDC deposits

Published 27 July 2026 · india

Private sector lender HDFC Bank on 27 July said that it has imposed ₹1 lakh penalty and issued warning letters to top executives — MD

Private sector lender HDFC Bank on 27 July said that it has imposed ₹1 lakh penalty and issued warning letters to top executives — MD and CEO, chief financial officer and Group Head – Retail Assets, for “business overreach” by employees with regard to deposits of the Maharashtra State Road Development Corporation (MSRDC). It added that the employee's behaviour was not motivated by “mala fide action, personal enrichment, or improper motive”. In a filing with the exchanges dated 27 July 2026, the HDFC Bank stated that its internal review process, completed today, showed that employees were involved in “business overreach” in regard to an arrangement with MSRDC for garnering deposits in 2017 and 2021.

Top executives fined ₹ 1 lakh, warning letters issued “Based on the findings and recommendation of the Special Disciplinary Committee of Independent Directors, the Board at its meeting held on 23 July 23, concluded that the conduct of the employees involved constituted business overreach rather than any mala fide action, personal enrichment, or improper motive,” it said. It added that the board has issued warning letters and monetary penalty of ₹1 lakh for three senior employees (the Managing Director and CEO, Chief Financial Officer and Group Head – Retail Assets), and warning letters for the remaining employees.

The Bank's MD and CEO is Sashidhar Jagdishan, CFO is Srinivasan Vaidyanathan and Group Head – Retail Assets is Arvind Vohra. The decision is “keeping in view any potential divergence with the applicable RBI directions and based on the recommendations of the Special Disciplinary Committee of Independent Directors”. Also Read | Three US law firms probe HDFC Bank over potential securities law violations Further, the central bank and regulatory authority, the Reserve Bank of India (RBI) is also being informed of the same, it added. HDFC Bank stock price takes hit Share price of the lender slipped over 2% last week (Wednesday, 22 July), following a media report about the lender's internal vigilance investigation into interest payments worth ₹45 crore made to a state firm.

HDFC Bank shares fell as much as 2.27% to ₹761.25 apiece on the BSE. Over the past three-month period HDFC Bank share price has risen 3% and jumped 11% on a year-to-date (YTD) basis. The stock has rallied 20% in two years and has surged 41% over the past five years.