Private Lender HDFC Bank Refutes Allegations In Rs 45 Crore MSRDC Payment Report

Private lender HDFC Bank on Wednesday refuted allegations of wrongdoing on reported payments of Rs 45 crore allegedly routed via marketing department to a Maharashtra government agency.

India's largest private bank noted that its internal oversight and audit mechanisms are robust and that all matters are handled as per established procedures.

“The bank has robust internal oversight, audit and control processes and systems. All issues are dealt with in accordance with Bank’s established norms, and 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 in its statement.  

The clarification statement came after media reports claimed that the bank’s audit committee had initiated a formal ‘Internal Vigilance Investigation’ into payments totalling Rs 45 crore that were allegedly disguised as marketing expenditure.

According to the media reports, an internal audit of the bank’s marketing department for FY25 had flagged the transactions and rated the department’s performance as “unsatisfactory”.

The reports further alleged that the payments were linked to the Maharashtra State Road Development Corporation (MSRDC) and were routed through the bank’s marketing department instead of being directly credited as interest payments.

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An investigation by an Indian daily, citing internal records, alleged that the payments were intended as “differential interest” paid above the specified rate on deposits.

The funds under scanner were allegedly shown as contributions towards a road safety awareness campaign through four local vendors.