HDFC Bank on Monday said its Board has concluded an internal review into its deposit arrangement with the Maharashtra State Road Development Corporation (MSRDC), finding that the employees involved were guilty of "business overreach" rather than any mala fide conduct, while imposing warning letters and a ₹1 lakh monetary penalty on three of its top executives.The disciplinary action follows the recommendations of a Special Disciplinary Committee of Independent Directors that reviewed the bank's arrangements with the state-owned infrastructure agency for mobilising deposits in 2017 and 2021.Also Read: HDFC Bank redeploys backend employees to customer-facing rolesAccording to the bank, its Board, at a meeting held on July 23, determined that the conduct of the employees did not involve personal enrichment or improper intent, but could have potentially diverged from applicable Reserve Bank of India (RBI) directions."Based on the findings and recommendation of the Special Disciplinary Committee of Independent Directors, 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," the bank said in a public statement.The Board, however, said that "keeping in view any potential divergence with the applicable RBI Directions" it had decided to issue warning letters along with a monetary penalty of ₹1 lakh each to the bank's Managing Director & CEO, Chief Financial Officer and Group Head – Retail Assets. Other employees involved in the matter have been issued warning letters.