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A spokesperson for HDFC Bank acknowledged the internal review but declined to comment on its findings or the executives involved. The spokesperson said, "In line with our policies, an internal review into this matter is currently underway to gather and evaluate all relevant facts. Appropriate action will be taken based on the findings, once the review is complete."
The bank said it remained committed to high standards of ethics and governance and took reports of potential violations seriously.
The findings were reported to senior management, including some board members, earlier this year, it said. Both executives have since been formally informed of the findings, though it remains unclear what disciplinary action they may face.
The probe comes at a sensitive time for HDFC Bank, which has a market value of about $115 billion and has built a reputation over three decades for conservative management, strong internal controls and consistent profitability. Its shares have declined about 28% this year.
The lender is preparing for its first chief executive from outside the organisation amid boardroom disputes and senior management departures. Anup Bagchi, a veteran of rival ICICI Group, is set to take over as chief executive on October 27.
In March, then-chairman Atanu Chakraborty resigned abruptly, citing differences between his personal values and certain practices at the bank. An independent legal review commissioned by the lender subsequently said his concerns were not substantiated.
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Bagchi’s appointment followed incumbent chief executive Sashidhar Jagdishan’s surprise decision not to seek another term after six years at the helm. Kaizad Bharucha, deputy managing director and one of the bank’s longest-serving executives, has also sought to leave at the end of December.