HDFC Bank Finds Rs 45 Crore Routed As Marketing Spend To Pay Higher Interest: Internal Probe

HDFC Bank is facing scrutiny after an internal vigilance investigation found that around Rs 45 crore was routed through marketing expenses to provide additional interest payments to Maharashtra State Road Development Corporation (MSRDC).

The probe, initiated by the bank’s audit committee in March 2026, examined payments made during FY24 and FY25 under the guise of sponsorship contributions for a road safety awareness campaign. Internal records reviewed during the investigation stated that the payments were allegedly structured to compensate MSRDC with returns above the bank’s permitted savings deposit rates.

According to the findings, senior executives discussed a mechanism to maintain a 6.01% return commitment made to MSRDC after a higher-rate deposit structure was withdrawn. The differential amount was allegedly routed through the bank’s marketing department using local vendors and campaign-related invoices.

The report flagged lapses in governance, compliance, and documentation, including a lack of legal review and incomplete records supporting the campaign activity. Testimonies examined during the inquiry also indicated that senior management officials were involved in discussions on the reimbursement structure.

The investigation further noted potential violations of Reserve Bank of India (RBI) deposit regulations and the bank’s internal policies.