HDFC Bank Denies Any Wrongdoing In Rs 45 Crore Interest Payment Matter

HDFC Bank on Wednesday denied allegations of wrongdoing after reports claimed that an internal probe at the lender identified nearly Rs 45 crore in payments made to a state-owned company through interest-related classifications. The bank said it follows established procedures in handling all internal matters and maintained that its governance and oversight mechanisms remain strong.

In a statement issued after the media reports surfaced, India’s largest private sector lender said it has “robust internal oversight, audit and control processes” in place. The bank also rejected what it described as assumptions of misconduct based on selective information. “Full process is always followed before final determination post any internal review. We strongly reject any assumptions of wrongdoing or culpability based on selective material,” the bank said.

According to a Bloomberg report, an internal audit conducted by HDFC Bank allegedly found that around Rs 45 crore had been paid to the Maharashtra State Road Development Corporation through marketing expenses categorised as “differential interest”. The report further claimed that the bank’s marketing department contributed nearly Rs 39.7 crore toward the government agency’s “Road Safety Awareness Campaign” during the financial years 2024 and 2025.

Also Read: Aluminium Hits Four-Year High After Trump’s Reported Hormuz Blockade Move

The developments have added to the scrutiny surrounding HDFC Bank and its Chief Executive Officer Sashidhar Jagdishan, whose current three-year term is set to end in October this year. Jagdishan, who has spent over three decades at the bank and became CEO in 2020, has overseen the lender’s balance sheet expansion as well as its merger with mortgage giant Housing Development Finance Corporation (HDFC).

Shares of HDFC Bank fell about 2.3% in early trade following the reports and have declined roughly 23% so far in 2026, underperforming the broader Nifty Bank index. Investor sentiment toward the lender has remained under pressure in recent months amid governance-related discussions and leadership uncertainty at the institution.

The latest controversy follows a leadership crisis earlier this year after the bank’s part-time chairman resigned, citing certain developments and practices that he said did not align with his personal values and ethics. HDFC Bank later appointed veteran banker Keki Mistry as interim chairman for three months. The Reserve Bank of India has since publicly backed the lender, stating that there are no material governance or conduct-related concerns at the bank.

Also Read: Brent Crude Rises As Iran Vows Retaliation Over US Strikes And Ceasefire Violations