HDFC Bank Fines CEO, CFO ₹1 Lakh Each After MSRDC Review Finds 'Business Overreach'
The board said the conduct was business overreach and found no mala fide action or personal enrichment after reviewing the MSRDC arrangements.
- On Monday, HDFC Bank's board issued warning letters and imposed a Rs 1 lakh penalty on Managing Director and Chief Executive Officer Sashidhar Jagdishan, Chief Financial Officer Srinivasan Vaidyanathan, and Group Head of Retail Assets Arvind Vohra for 'business overreach'.
- The board's action follows an internal review of the bank's deposit arrangements with the Maharashtra State Road Development Corporation spanning 2017 to 2021, concluding the employees' conduct constituted 'business overreach' rather than improper motive.
- Investigation by The Indian Express revealed the bank made Rs 45 crore in interest payments to the MSRDC disguised as marketing spend through FY24 and FY25, with internal audit flagging the department as 'unsatisfactory'.
- The board directed the matter be communicated to the Reserve Bank of India following earlier governance concerns after former Part-time Chairman Atanu Chakraborty resigned in March, citing 'certain happenings and practices' within the bank.
- Separately, Managing Director Jagdishan's current term concludes on October 26, 2026. External law firms Wilson Sonsini Goodrich & Rosati and Wadia Ghandy previously provided the bank a 'clean chit' regarding Chakraborty's initial allegations.
16 Articles
16 Articles
HDFC Bank Board Imposes Rs 1 Lakh Penalty on MD, CFO in MSRDC Case
HDFC Bank's board has imposed a monetary penalty of Rs 1 lakh each on its Managing Director and CEO Sashidhar Jagdishan, CFO Srinivasan Vaidyanathan, and Group Head (Retail Assets) Arvind Vohra for divergence from RBI directions in the Maharashtra State Road Development Corporation (MSRDC) case.
HDFC Bank Penalises CEO Sashidhar Jagdishan and Top Executives Over MSRDC Deposits: Here's Why Action Was Taken
HDFC Bank's board issued INR 1 lakh penalties and warning letters to CEO Sashidhar Jagdishan, CFO Srinivasan Vaidyanathan, and executive Arvind Vohra following an internal review of historical MSRDC deposits, concluding the actions constituted business overreach. According to a regulatory filing, the board met on July 23 to evaluate the committee's findings. HDFC Bank Penalises CEO Sashidhar Jagdishan and Top Executives Over MSRDC Deposits: Here…
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