Wire flash
FinanceHDFC Bank fines CEO, CFO ₹1 lakh each for business overreach in MSRDC deposit case
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
HDFC Bank has imposed a fine of ₹1 lakh each on its Managing Director & CEO, Chief Financial Officer, and Group Head of Retail Assets following an internal review into the bank's deposit arrangements with the Maharashtra State Road Development Corporation (MSRDC) in 2017 and 2021. The bank's board, acting on the recommendation of a Special Disciplinary Committee of Independent Directors, concluded that the employees' conduct constituted 'business overreach' rather than any mala fide action, personal enrichment, or improper motive. However, due to potential divergence with applicable RBI directions, the board decided to issue warning letters and monetary penalties to the three senior employees, and warning letters to other involved employees. The board has also directed that the matter be communicated to the Reserve Bank of India. The announcement was made via an exchange filing on July 27, 2026.
Source report
Source: Mumbai | The Hindu Bureau
HDFC Bank has imposed a fine of ₹1 lakh each on its Managing Director & CEO, Chief Financial Officer, and Group Head of Retail Assets for “business overreach,” following an internal review into the bank’s deposit arrangements with the Maharashtra State Road Development Corporation (MSRDC).
In an exchange filing, the bank stated:
“The bank today announces the conclusion of an internal review process pertaining to the arrangement with Maharashtra State Road Development Corporation (MSRDC) for garnering deposits in 2017 and 2021. Based on the findings and recommendation of the Special Disciplinary Committee of Independent Directors, the board at its meeting held on July 23, 2026, concluded that the conduct of the employees involved constituted business overreach rather than any mala fide action, personal enrichment, or improper motive. However, keeping in view any potential divergence with the applicable RBI Directions and based on the recommendations of the Special Disciplinary Committee of Independent Directors, the Board decided to issue warning letters and monetary penalty of ₹1 lakh for three senior employees (the Managing Director & CEO, Chief Financial Officer and Group Head – Retail Assets), and warning letters for the remaining employees.”
The bank’s board has also directed that the matter be communicated to the Reserve Bank of India.
Source
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Regional
Part of this Story
HDFC Bank fines CEO, CFO ₹1 lakh each for business overreach in MSRDC deposit case