HDFC Bank Board Warns CEO Sashidhar Jagdishan, CFO, Imposes ₹1 Lakh Penalty Over MSRDC Deposit Probe
The board of directors at HDFC Bank Limited has issued warning letters and imposed a monetary penalty of ₹1 lakh each on its Managing Director and Chief Executive Officer Sashidhar Jagdishan, Chief Financial Officer Srinivasan Vaidyanathan, and Group Head of Retail Assets Arvind Vohra.
- Republic Business
- 2 min read
The board of HDFC Bank Limited, India's largest private sector lender, has penalised its top after an internal probe into deposit mobilisations from a state-run infrastructure body.
In a stock exchange filing, the bank announced that its board had issued warning letters and a penalty of ₹1 lakh each to three senior executives: Managing Director & CEO Sashidhar Jagdishan, Chief Financial Officer Srinivasan Vaidyanathan, and Group Head of Retail Assets Arvind Vohra. Other employees connected to the matter received warning letters.
The board's decision, finalized during its meeting on July 23, was based on recommendations from a Special Disciplinary Committee of Independent Directors. The independent committee had been tasked with reviewing the bank's arrangements with the Maharashtra State Road Development Corporation (MSRDC) for garnering deposits between 2017 and 2021.
'Business Overreach' Without Mala Fide Intent
According to the bank, the independent committee found no evidence of personal enrichment, improper motive, or mala fide action by the executives involved. Instead, the findings categorized the conduct as "business overreach" in driving deposit growth. However, keeping in view potential divergence from regulatory directions issued by the Reserve Bank of India (RBI), the board elected to enforce monetary and administrative penalties.
"The board, at its meeting held on July 23, 2026, concluded that the conduct of the employees involved constituted business overreach rather than any mala fide action, personal enrichment, or improper motive," HDFC Bank stated in its filing.
Matter Escalated to RBI
HDFC Bank also confirmed that the board has directed that the findings of the internal review and the subsequent disciplinary measures be formally communicated to the Reserve Bank of India. The internal investigation followed reports examining whether marketing expense classifications were utilized during the 2017–2021 deposit drives.
Published By : Shourya Jha
Published On: 27 July 2026 at 17:57 IST