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HDFC Bank share price slips 3% on report of improper lending in vehicle finance unit

Share price of HDFC Bank fell 3.09% to Rs 1,071.2 compared to the previous close of Rs 1,105 on BSE

twitter-logoBusinessToday.In | July 13, 2020 | Updated 14:39 IST
HDFC Bank share price slips 3% on report of improper lending in vehicle finance unit
HDFC Bank stock has lost 15.28% since the beginning of this year and 10% during the last one year

HDFC Bank share price fell over 3% in afternoon session today amid a report the private sector lender has carried out an investigation into allegations of "improper lending practices" and "conflict of interest" at its vehicle financing arm. Share price of HDFC Bank fell 3.09% to Rs 1,071.2 compared to the previous close of Rs 1,105 on BSE.

The large cap stock trades higher than 20 day, 50 day and 100 day moving averages but lower than 5 day and 200 day moving averages. The bank's market capitalisation fell to Rs 5.92 lakh crore. HDFC Bank stock has lost 2.31% in one week.

The blue chip stock has lost 15.28% since the beginning of this year and 10% during the last one year.  The stock has gained 9.61% in a month.

Total 4.99 lakh shares changed hands amounting to turnover of Rs 54.21 crore.

The banking stock hit a fresh 52-week high of Rs 1,304 on December 19, 2019 and 52-week low of Rs 738.90 on March 24, 2020. According to a Bloomberg report, details regarding the probe have not yet been made public.

HDFC Bank probes allegations of 'improper lending practices' at vehicle financing unit

The tenure of Ashok Khanna, who headed the vehicle financing arm and has worked at bank for around 18 years, was not extended after the probe despite an earlier proposal to do so. Khanna retired in March this year.

The unit of HDFC Bank had total outstanding loans of Rs 1.2 lakh crore as of March 31, 2020, the news agency claimed. Earlier, the bank management was considering increasing Khanna's tenure by at least six months until October.

The decision was reportedly being considered to ensure smooth continuity ahead of the retirement of HDFC Bank Managing Director Aditya Puri. Notably, Khanna, who was due to retire in 2017, had been receiving an extension, primarily due to the importance of his unit.

The bank had probed all allegations leveled by an internal audit committee and it followed due process, the agency reported citing unnamed sources.

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