HDFC Bank found itself in the media spotlight after reports that the lender had made excess payments in order to secure large deposits from a Maharashtra government-linked corporation. The report sparked selling pressure in the stock and renewed investor interest in governance practices at the bank. The HDFC Bank has rejected the allegations and maintained that its internal review, audit and oversight systems remain robust. While reports have raised questions around process compliance, HDFC Bank says no conclusions should be reached before internal reviews are completed.
What Triggered The Concern?
According to a report by The Indian Express, citing documents and sources, HDFC Bank allegedly paid ₹45 crore to the Maharashtra State Road Development Corporation (MSRDC) to attract large deposits. The report claimed that additional payouts were allegedly structured as marketing expenses routed through vendors and described them as “differential interest” arrangements. It also reported that regulations do not permit lenders to offer different interest structures to depositors.
Reuters reported that the newspaper further alleged that CEO Sashidhar Jagdishan was aware of the arrangement. Reuters noted that it could not independently verify the report.
NewsX could not independently verify these claims.
HDFC Bank’s Response: “Strongly Reject Any Assumptions of Wrongdoing”
Responding to Reuters, an HDFC Bank spokesperson said, “All issues are dealt with in accordance with established norms, and the full process is always followed before final determination post any internal review.”
The spokesperson added, “We strongly reject any assumptions of wrongdoing or culpability based on selective material.”
According to CNBC-TV18, the bank also reiterated that it has “robust internal oversight, audit & control processes” and said issues are addressed under established internal norms.
Stock Market Reaction: HDFC Bank Shares Slip
The report weighed on investor sentiment during Wednesday’s session.
HDFC Bank shares fell as much as 2.5% intraday and traded around ₹759–760 levels during afternoon trade. The stock decline added to recent pressure on the lender’s valuation and brought governance concerns back into focus.
Governance Questions Remain Under Watch
HDFC Bank’s stock has lost about 9.5% since March 19, when former part-time chairman Atanu Chakraborty suddenly resigned, saying he had concerns that certain practices were not in line with his personal values and ethics, Reuters reported. Legal firms reviewing governance concerns have not yet found material process lapses, but the review is ongoing.
The market is also looking for clarity on leadership continuity, as HDFC Bank has not yet filed an application with the central bank for the reappointment of CEO Sashidhar Jagdishan ahead of the end of his current term in October.
(With inouts from Reuters)
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)
Priyanka Roshan is a business writer and assistant editor at the NewsX website who tracks everything from stock market swings and corporate earnings to personal finance trends and policy shifts. Known for turning fast-moving business developments into sharp, reader-friendly stories, she combines speed, accuracy, and a data-driven approach to break down complex financial news for everyday audiences.
With over 9.5 years of newsroom experience, Priyanka has worked with leading media organisations, including Moneycontrol, Times Now, and Ping Digital, covering diverse beats such as business, politics, technology, auto, travel, sports, and the world. From live breaking news desks to SEO-led digital storytelling, she specialises in creating engaging content that keeps readers informed without overwhelming them.
