HDFC Bank shares drop 2% on report of probe into Rs 45-crore interest payments
The stock dropped nearly 2.6% during the trading session after the report surfaced. As per NSE data cited in the report, HDFC Bank shares were trading at Rs 758.75, down Rs 20.15 or 2.59%, around 1:29 pm.
Shares of HDFC Bank fell sharply on Wednesday after a report claimed that the bank had carried out an internal vigilance investigation into Rs 45 crore worth of interest payments linked to the Maharashtra State Road Development Corporation (MSRDC).
The stock dropped nearly 2.6% during the trading session after the report surfaced. As per NSE data cited in the report, HDFC Bank shares were trading at Rs 758.75, down Rs 20.15 or 2.59%, around 1:29 pm.
The report, first published by The Indian Express and later cited by Moneycontrol, said the bank’s internal vigilance investigation examined “differential interest” payments worth Rs 45 crore made to MSRDC.
According to the report, the probe allegedly identified accountability among several senior executives, including MD and CEO Sashidhar Jagdishan.
The development has drawn attention because it comes just months after former HDFC Bank chairman Atanu Chakraborty resigned abruptly in March.
The report claimed Chakraborty had stepped down citing concerns that certain practices within the bank did not align with his personal values.
HDFC BANK DENIES ALLEGATIONS
HDFC Bank, however, strongly rejected the claims linked to the report.
According to CNBC-TV18, the bank said it “strongly rejects” any assumptions of wrongdoing and maintained that it has a “robust internal oversight” framework in place.
The bank denied allegations of irregularities and defended its internal governance systems amid the market reaction.
The statement from the bank came as investors reacted sharply to the report and concerns around internal governance and senior management accountability.
WHAT THE REPORT SAID
According to the Indian Express report cited by Moneycontrol, the internal investigation focused on interest payments that were allegedly structured as “differential interest” on deposits linked to MSRDC.
The report said the bank’s vigilance review looked into how the payments were made and whether internal processes were properly followed.
However, the bank has denied any wrongdoing or governance lapses.
The report did not indicate any regulatory action at this stage.
STOCK UNDER PRESSURE
The sharp fall in HDFC Bank shares reflected investor nervousness around governance-related headlines involving one of India’s largest private sector banks.
HDFC Bank remains one of the heaviest-weighted stocks in Indian benchmark indices and is closely tracked by both domestic and foreign investors.
The banking giant has been under investor focus in recent months amid integration-related challenges following its merger with HDFC Ltd and pressure on margins and deposit growth.
The latest report added another layer of uncertainty for the market, even as the bank denied all allegations.
WHY THE DEVELOPMENT MATTERS
Governance concerns tend to attract strong investor attention in the banking sector because banks operate on public trust, compliance systems and regulatory oversight.
Even reports of internal investigations involving senior management can trigger sharp reactions in stock prices.
At the same time, HDFC Bank’s categorical denial and assertion of strong oversight mechanisms suggest the bank is pushing back firmly against the allegations.
Investors are now expected to watch closely for any further clarification from the bank or regulatory developments linked to the matter.