HDFC Bank Slaps Rs 1 Lakh Penalty On CEO, CFO Over MSRDC Deposits
The action comes soon after the appointment of former chief election commissioner and finance secretary Rajiv Kumar as part-time chairman of the bank.
Mumbai: The Board of HDFC Bank has penalised its senior executives after an internal probe found “business overreach” in the manner the bank secured deposits from the Maharashtra State Road Development Corporation (MSRDC).
In a stock exchange filing, the bank announced that its board had issued warning letters and a penalty of ₹ one lakh each to three senior executives—managing director and chief executive officer Sashidhar Jagdishan, Chief Financial Officer Srinivasan Vaidyanathan, and Group Head of Retail Assets Arvind Vohra.
Besides, warning letters were issued to the remaining employees involved in the case related to garnering large deposits from MSRDC between 2017 and 2021 by allegedly paying about Rs 45 crore disguised as marketing spends.
The action comes soon after the appointment of former chief election commissioner and finance secretary Rajiv Kumar as part-time chairman of the bank.
The lender said that at its meeting held on July 23, the Board considered the findings (examining the bank’s 2017 and 2021 arrangements with MSRDC for garnering deposits) and recommendations of a Special Disciplinary Committee of Independent Directors. The Committee concluded that the conduct of the employees involved amounted to "business overreach" and not any mala fide action, personal enrichment or improper motive.
HDFC Bank said the action was taken partly to pre-empt any divergence with Reserve Bank of India norms and confirmed the regulator has been informed of the disciplinary findings.
It may be recalled that HDFC Bank’s former chairman Atanu Chakraborty had quit in March 2026 citing governance and ethical concerns.
