HDFC Bank, India’s largest private sector lender, is conducting an internal review into alleged leak of confidential information and has potentially identified two executives in connection with the matter, sources said. The bank said appropriate action would be taken based on the findings once the review is complete.
A bank spokesperson told Business Standard that the bank takes any report of potential violations seriously. “In line with our policies, an internal review into this matter is currently underway to gather and evaluate all relevant facts. To protect the integrity of the process and the privacy of all parties involved, we do not comment on active internal reviews. Appropriate action will be taken based on the findings once the review is complete,” the bank spokesperson said.
“The bank is committed to upholding the highest standards of ethics and governance as outlined in our Code of Conduct,” the bank spokesperson added.
A source aware of the development said the internal probe could be linked to the leak of information concerning the Maharashtra State Road Development Corporation (MSRDC) deposit matter. The issue triggered controversy and led to three senior bank executives being penalised ₹1 lakh each for business overreach.
Those penalised were Sashidhar Jagdishan, managing director and chief executive officer (MD & CEO), Srinivasan Vaidyanathan chief financial officer (CFO), and Arvind Vohra, group head of Retail Assets. They were penalised following an internal probe into the matter.
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A report had alleged that the bank paid around ₹ 45 crore to the state-run in FY24 and FY25 through marketing expenses classified as “differential interest”.
The latest internal review comes as Anup Bagchi prepares to take over as the bank’s new MD&CEO. Jagdishan will step down on October 26 with Bagchi set to assume charge on October 27.
In his final analyst call after six years at the helm, Jagdishan said he was leaving behind a solid platform that had demonstrated strength and resilience in navigating regulatory embargoes, the Covid-19 pandemic, a complex merger amid monetary tightening concerns, and governance matters that had since been resolved.
The bank has faced questions over its governance practices, since its former part-time chairman, Atanu Chakraborty, resigned in mid-March, alleging that certain “happenings and practices” at the bank were not in line with his values and ethics.