HDFC Bank Concludes Internal Review of MSRDC Arrangement, Imposes Penalties on Senior Employees
HDFC Bank Limited has announced the conclusion of its internal review concerning the arrangement with Maharashtra State Road Development Corporation (MSRDC) related to deposit gathering in 2017 and 2021.The Board of Directors, following the findings and recommendations of a Special Disciplinary Committee of Independent Directors, made a determination regarding the conduct of employees involved in the MSRDC arrangement. The Bank determined that the employee conduct constituted business overreach rather than any malicious action, personal enrichment, or improper motive.
In response to potential divergence with applicable RBI Directions, the Board decided on disciplinary measures for the involved personnel. A monetary penalty of ₹1 lakh and warning letters were issued to three senior employees: the Managing Director & CEO, Chief Financial Officer, and Group Head - Retail Assets. Warning letters were also issued to other employees involved in the matter.
The Board further directed that the entire matter be communicated to the Reserve Bank of India (RBI).
HDFCBANK Stock Price Movement
Shares of HDFC Bank Limited today slipped by 0.34% to settle at ₹739.55 in the post-market trading session. The equity saw active movement during the day, trading within an intraday range established between ₹738.10 and ₹747.95.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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