HDFC Bank Imposes Rs 1 Lakh Fine Each On CEO & CFO Over MSRDC Deposit Review

HDFC Bank has imposed a monetary penalty of Rs 1 lakh each on its Chief Executive Officer, Managing Director, Chief Financial Officer and Group Head of Retail Assets following an internal review of the bank’s deposit arrangements with Maharashtra State Road Development Corporation (MSRDC).

The review examined deposit-related arrangements made in 2017 and 2021. Based on the findings of a Special Disciplinary Committee of Independent Directors, the bank’s Board concluded that the conduct involved business overreach and not any personal gain or improper intent. The Board issued warning letters to the three senior executives and other employees involved in the matter. The bank said the decision was taken considering possible deviations from applicable Reserve Bank of India (RBI) directions.

The Board has also decided to inform the RBI about the outcome of the review and the action taken.