Mumbai, May 27 (IANS). HDFC Bank on Wednesday rejected a report that claimed financial irregularities worth Rs 45 crore. It also said that the speculations about irregularities are based only on selected facts and the bank handles all issues through internally established processes.
HDFC Bank claimed that it follows strong internal inspection, audit and control procedures.
HDFC Bank spokesperson said, “We completely reject any impropriety based on selected facts. All cases are dealt with as per established norms and any internal review is followed by due process before final decision is taken.”
This clarification comes after a report claimed that HDFC Bank’s Audit Committee of the Board (ACB) on March 12 has ordered a formal internal vigilance probe into payments of Rs 45 crore made to Maharashtra State Road Development Corporation (MSRDC) during FY 2024 and 2025.
The report further said that these payments were allegedly linked to different interest rates offered by MSRDC on amounts deposited in the bank.
According to the report, instead of being deposited directly as interest payment to the state government agency, the funds were allegedly routed through the bank’s marketing department and shown as contributions to a road safety awareness campaign through four local vendors.
Furthermore, the report alleges that the arrangement was discussed at the senior management level in the presence of HDFC Bank MD and CEO Shashidhar Jagadish.
After this report, a decline in the shares of HDFC Bank was seen. At 2:50 pm the stock was at Rs 757.90, down 2.69 per cent on the National Stock Exchange (NSE).
–IANS
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