HDFC Bank shares fell nearly 2 percent on Wednesday after reports of an internal vigilance investigation raised questions over certain interest-related payments made to the Maharashtra State Road Development Corporation. The development prompted cautious sentiment among investors and put pressure on one of India’s largest private sector lenders.
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According to NSE data, the stock was trading around ₹763.80, down ₹15.10 or 1.94 percent. The decline reflected investor unease after reports suggested that the bank’s internal systems had come under scrutiny over the handling of ₹45 crore in “differential interest” payments.
Payments Routed Through Marketing Department
The internal probe reportedly focuses on how the ₹45 crore payments were processed within the bank. Instead of being recorded as standard interest payouts, the payments were allegedly routed through the marketing department, raising concerns over accounting classification and internal compliance procedures.
The report said the transactions were later shown as contributions toward a road safety awareness campaign carried out through four local vendors. This has drawn attention to the bank’s internal controls, audit systems and governance framework.
The bank’s Audit Committee of the Board is said to have initiated the review on March 12 after an internal audit flagged irregularities in the marketing department and rated its functioning as “unsatisfactory.” The findings reportedly led to a deeper vigilance review to assess whether internal procedures were properly followed.
Governance Questions Draw Market Attention
The report also claimed that accountability issues were identified involving several senior executives, including Managing Director and CEO Sashidhar Jagdishan. HDFC Bank has not issued a detailed public statement confirming the findings or responding to the specific allegations mentioned in the report.
The timing of the investigation has added to market speculation. In March, former chairman Atanu Chakraborty resigned, citing “certain happenings and practices within the bank” that were not aligned with his personal values and ethics.
There is no official confirmation linking his resignation to the ongoing internal probe. However, the proximity of the events has drawn attention from investors and analysts tracking governance developments at the bank.
Investors Await Clarity From Bank
Market experts said the ₹45 crore amount is relatively small when compared with HDFC Bank’s overall balance sheet, but governance concerns often carry a wider impact on investor sentiment. This, they said, may explain the immediate pressure on the stock despite the limited financial size of the reported issue.
HDFC Bank has long been viewed as one of India’s most stable and well-managed financial institutions, known for strong asset quality and conservative risk practices. The reported internal scrutiny has now brought renewed focus on its governance standards and oversight mechanisms.
The bank has not released a detailed clarification on the allegations, and the investigation remains internal at this stage. No external regulatory action has been confirmed so far. Investors are expected to closely track the bank’s official disclosures, the outcome of the probe and any corrective measures that may follow.
