Responding to the alleged disguising of extra interest payments as marketing expenditure on deposits placed by a Maharashtra Government-owned entity, HDFC Bank on Friday stated that this matter does not have a material impact on the financial statements and the internal controls at the Bank are robust.Referring to BSE’s May 27, 2026 (Wednesday) email seeking clarification from the Bank on the media report, “HDFC Bank shares slide 2.5% amid reports of internal probe into ₹45 crore payment to state transport firm”, HDFC Bank on Friday said: “We wish to state that in line with the highest corporate governance standards of the Bank, the Internal Audit function conduct reviews, identifies and presents its observations from time to time.“As such, the observations of Internal Audit function are comprehensively addressed by the Bank and that applies to the matter in question.”The Indian Express reported that on March 12, 2026, the Audit Committee of HDFC Bank’s Board (ACB) had ordered a formal internal vigilance investigation into payments totalling ₹45 crore as “differential interest” (interest over and above the specified rate) made to the Maharashtra State Road Development Corporation (MSRDC) on its deposits during FY24 and FY25.The report alleged that instead of being credited directly to MSRDC’s account as interest earned, the aforementioned amount was routed through the bank’s marketing department, disguised as contributions to a road safety awareness campaign through four local vendors.“This matter does not have a material impact on the financial statements and the internal controls at the Bank are robust. Accordingly, in our view, no requirement of making a disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is triggered.“The Bank continues to maintain sound financial and risk management practices, with robust systems of internal control and oversight. We remain committed to the highest standards of corporate governance and regulatory compliance,” the Bank said in a regulatory filing.According to banking experts the bank may face regulatory scrutiny and if it is found that rules were bent to source deposits, there could be enforcement action.Published on May 29, 2026