HDFC Bank concludes internal review into MSRDC deposit arrangements; CEO, CFO among 3 fined Rs 1 lakh

HDFC Bank Ltd on Monday said its board has concluded an internal review into deposit arrangements undertaken with the Maharashtra State Road Development Corporation (MSRDC) in 2017 and 2021, determining that the conduct of the employees involved amounted to business overreach rather than any mala fide action, personal enrichment or improper motive.

In a regulatory filing, the private sector lender said the review was carried out by a Special Disciplinary Committee of Independent Directors.

Based on the committee's findings and recommendations, the bank's board, at its meeting held on July 23, 2026, decided to issue warning letters and a monetary penalty of Rs 1 lakh each to three senior employees -- Managing Director & Chief Executive Officer, Chief Financial Officer, and Group Head – Retail Assets.

The board also decided to issue warning letters to the remaining employees involved.

HDFC Bank said the action was taken while keeping in view "any potential divergence with the applicable RBI Directions."

The Board "concluded that the conduct of the employees involved constituted business overreach rather than any mala fide action, personal enrichment, or improper motive," the bank stated in its filing.

The lender further said its board has directed that the matter be communicated to the Reserve Bank of India (RBI).

The internal review relates to deposit arrangements undertaken with MSRDC in 2017 and 2021.

The statement was released post-market hours today. Earlier in the day, HDFC Bank shares slipped 0.41 per cent to close at Rs 739.55. At this level, the stock has corrected 25.35 per cent on a year-to-date (YTD) basis.