HDFC Bank imposed a fine of ₹1 lakh each on MD CEO, CFO and group head of retail assets for “business overreach” after running an internal review into the bank’s deposit arrangements with MSRDC. “The bank today announces the conclusion of an internal review process pertaining to the arrangement with Maharashtra State Road Development Corporation (MSRDC) for garnering deposits in 2017 and 2021. 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. However, keeping in view any potential divergence with the applicable RBI Directions and based on the recommendations of the Special Disciplinary Committee of Independent Directors, the Board decided to issue warning letters and monetary penalty of ₹1 lakh for three senior employees (the Managing Director & CEO, Chief Financial Officer and Group Head – Retail Assets), and warning letters for the remaining employees,” the bank said in its exchange filing. The bank’s board further directed that the matter be communicated to the Reserve Bank of India. Published - July 27, 2026 08:07 pm IST