HDFC Bank shares drop 2% on alleged ₹45 crore payment irregularities
Synopsis
HDFC Bank's stock fell over 2% after a report alleged ₹45 crore in payments to a Maharashtra state agency were disguised as road safety campaign contributions and routed through vendors — with senior management allegedly aware. The bank's chairman had already quit citing ethics differences, and neither the bank nor the RBI responded to pre-publication queries.
Key Takeaways
HDFC Bank shares fell 2.27% to ₹761.25 on the BSE on 27 May .
A report by The Indian Express alleged ₹45 crore in irregular payments to MSRDC during FY2024–FY2025 .
Funds were allegedly routed via the bank's marketing department as vendor payments for a road safety campaign, not as direct interest credits.
The bank's Audit Committee of the Board ordered an internal vigilance probe on 12 March .
Non-executive chairman Atanu Chakraborty resigned on 18 March , citing differences over values and ethics; Keki Mistry was appointed interim chairman.
The RBI had previously stated in March that there were no material governance concerns at the bank.
HDFC Bank shares fell as much as 2.27% to ₹761.25 on the BSE during early trade on Wednesday, 27 May, after a media report alleged irregular payment practices at India's largest private sector lender, triggering fresh concerns about the bank's internal governance.
What the Report Alleged
According to a report by The Indian Express, HDFC Bank's Audit Committee of the Board (ACB) on 12 March ordered a formal internal vigilance investigation into payments worth ₹45 crore made to the Maharashtra State Road Development Corporation (MSRDC) during FY2024 and FY2025.
The report alleged that these payments were linked to differential interest offered on deposits maintained by MSRDC with the bank. Rather than being credited directly to the state agency as interest, the funds were allegedly routed through the bank's marketing department and recorded as contributions towards a road safety awareness campaign via four local vendors.
The report further alleged that the arrangement was discussed at senior management levels, reportedly in the presence of HDFC Bank Managing Director and Chief Executive Officer Sashidhar Jagdishan.
Chairman's Resignation and Leadership Transition
The allegations have been linked — in the same report — to the abrupt resignation of HDFC Bank's non-executive chairman Atanu Chakraborty on 18 March. Chakraborty reportedly cited differences over values and ethics as the reason for his departure. The bank's management subsequently stated it had not been informed of any specific concerns despite repeated requests for clarification.
Following the exit, HDFC Group veteran Keki Mistry was appointed interim chairman. Mistry maintained that the bank's governance and operations remained stable.
Bank and Regulator Response
As of the time of the report's publication, HDFC Bank had not issued any clarification to the stock exchanges. Both the bank and the Reserve Bank of India (RBI) did not respond to detailed queries sent by the newspaper ahead of publication, according to the report.
Notably, earlier in March, the RBI had stated that there were no material concerns regarding HDFC Bank's governance or conduct — a position that now faces renewed scrutiny in light of the allegations.
Market Impact
At last count, the stock was trading at ₹764.70, down 1.84% on the exchange. The sell-off reflects investor unease over governance risk at a systemically important lender. This is the latest in a series of governance-related headlines that have periodically weighed on HDFC Bank's stock since its merger with HDFC Ltd in 2023.
Analysts and investors will be closely watching whether the bank issues a formal exchange filing or if the RBI revisits its earlier clean chit in light of the new disclosures.
Point of View
And that this was discussed at senior management level, strike at the credibility of the bank's internal controls. The timing matters: the chairman's ethics-driven resignation came just days after the ACB probe was ordered, and the bank has so far offered no exchange disclosure. The RBI's earlier clean chit now looks premature. Markets are right to price in governance risk until the bank speaks clearly.
NationPress
8 Aug 2026
Frequently Asked Questions
Why did HDFC Bank shares fall on 27 May?
HDFC Bank shares fell over 2% after a report alleged that the bank made ₹45 crore in irregular payments to the Maharashtra State Road Development Corporation, routed through vendors rather than as direct interest credits. The report also raised concerns about senior management's awareness of the arrangement.
What is the ₹45 crore HDFC Bank payment controversy?
According to the report, HDFC Bank's Audit Committee ordered a probe into ₹45 crore paid to MSRDC during FY2024 and FY2025. The payments, allegedly linked to differential deposit interest, were reportedly disguised as contributions to a road safety campaign via four local vendors rather than credited directly to the state agency.
Why did HDFC Bank chairman Atanu Chakraborty resign?
Atanu Chakraborty resigned as non-executive chairman on 18 March, reportedly citing differences over values and ethics. The bank's management later stated it had not been informed of any specific concerns despite repeated requests. The resignation has been linked in media reports to the internal payment probe.
What has the RBI said about HDFC Bank's governance?
The Reserve Bank of India stated in March that there were no material concerns regarding HDFC Bank's governance or conduct. However, neither the RBI nor the bank responded to detailed queries from the newspaper ahead of publication of the latest report.
Who is the current interim chairman of HDFC Bank?
Keki Mistry, a veteran of the HDFC Group, was appointed interim chairman following Atanu Chakraborty's resignation. Mistry has maintained that the bank's governance and operations remain stable.
