HDFC Bank Fines CEO And CFO ₹1 Lakh Each, Here's What Did The Internal Investigation Reveal?

Mumbai: HDFC Bank has imposed a fine of Rs 1 lakh each on three senior executives, including its Chief Executive Officer and Chief Financial Officer, after an internal investigation into an old deposit arrangement.

The action covers CEO Sashidhar Jagdishan, CFO Srinivasan Vaidyanathan and Group Head Arvind Vohra. The bank’s board also issued warning letters to all three executives.

Investigation Findings

The matter relates to deposit arrangements entered into with the Maharashtra State Road Development Corporation in 2017 and 2021.

A special committee of independent directors examined the transactions. The investigation reportedly found no evidence of dishonest intentions, personal benefits or fraud involving the executives.

However, the committee observed that some officials had acted beyond the bank’s approved rules and defined authority. Based on these findings, the board decided to impose the fines and issue formal warnings.

Other employees connected with the matter received warning letters but were not fined. HDFC Bank also said that details of the investigation and action would be shared with the Reserve Bank of India.

Earlier Allegations

Media reports in May 2026 alleged that HDFC Bank had paid nearly Rs 45 crore to secure large deposits from MSRDC. The reported payments were allegedly recorded as marketing expenses.

The reports also claimed that the bank’s CEO knew about these payments. HDFC Bank denied the allegations at the time and maintained that it had strong audit and control systems.

The bank said its decisions were taken in line with established rules and internal procedures.

Previous Concerns

Former HDFC Bank chairman Atanu Chakraborty had earlier raised concerns involving integrity and alleged wrongdoing. External experts examined those claims, but the review reportedly found no strong evidence to prove them.

The latest development had a limited impact on HDFC Bank shares. The stock ended slightly lower at Rs 740 following the news.

Over the past month, the private-sector lender’s shares have declined by around 7.34 percent, reflecting continued pressure on the counter overall.