HDFC Bank MSRDC Case: CEO & CFO Penalized As Internal Review Finds Business Overreach

HDFC Bank has concluded its internal review into the MSRDC deposit case, describing it as a case of business overreach rather than mala fide conduct. The bank imposed a ₹1 lakh penalty each on MD & CEO Sasidhar Jagdishan, CFO Sreenivasan Vaidyanathan, and Retail Assets Head Arvind Bora, while also issuing warning letters and informing the RBI. In this report, Business Today's Nachiket Kelkar explains the probe findings, the governance concerns, ongoing US shareholder investigations, and what the RBI could consider regarding the CEO's reappointment.