Mumbai: Shares of HDFC Bank dropped more than 2 percent during early trade on Wednesday after a media report alleged irregularities in certain payments made by the bank.
The stock fell as much as 2.27 percent to Rs 761.25 on the BSE during morning trade. Later, the shares were trading at Rs 764.70, down 1.84 percent. The fall came after concerns emerged over the bank’s internal governance and payment practices.
Report Mentions Rs 45 Crore Payments
According to a report by The Indian Express, the bank’s Audit Committee of the Board had ordered an internal vigilance investigation on March 12.
The investigation is related to payments worth around Rs 45 crore made to the Maharashtra State Road Development Corporation during FY24 and FY25.
The report claimed that the payments were linked to higher interest offered on deposits maintained by MSRDC with the bank.
However, instead of being directly shown as interest payments, the funds were allegedly routed through the bank’s marketing department.
Alleged Route Through Vendors
The report further alleged that the payments were shown as contributions for a road safety awareness campaign.
According to the report, four local vendors were used in the process. It also claimed that discussions related to the arrangement took place at senior management levels in the presence of HDFC Bank MD and CEO Sashidhar Jagdishan.
So far, the bank has not issued any official clarification to stock exchanges regarding the allegations.
Chairman’s Exit Also Linked
The report also connected the developments with the resignation of former non-executive chairman Atanu Chakraborty on March 18.
He had resigned citing differences related to values and ethics. However, the bank management later stated that it was not informed about any specific concerns despite repeated requests.
Following his exit, Keki Mistry was appointed interim chairman.
RBI’s Earlier Statement
Earlier in March, the Reserve Bank of India had said there were no material concerns regarding HDFC Bank’s governance or conduct.
The report also mentioned that both the bank and RBI did not respond to queries sent by the newspaper before publication.
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