Shares of HDFC Bank fell nearly 2% on Wednesday after reports emerged that the lender had conducted an internal vigilance investigation into ₹45 crore worth of “differential interest” payments linked to the Maharashtra State Road Development Corporation (MSRDC).
The stock dropped as much as 2.27% during intraday trade before trimming some losses. According to NSE data, HDFC Bank shares were trading around ₹763.80, down 1.94%, in morning trade.
The development follows a report by The Indian Express, which said the bank’s Audit Committee initiated a formal internal vigilance probe after an audit flagged transactions routed through the marketing department and rated its functioning as “unsatisfactory.”
According to the report, the payments were allegedly structured as “differential interest” on deposits from MSRDC and routed through marketing-related expenses tied to a road safety awareness campaign involving local vendors.
The investigation reportedly identified accountability among several senior executives, including Managing Director and CEO Sashidhar Jagdishan. Reuters reported that the alleged payments were made to attract large deposits while bypassing regulatory restrictions on preferential interest payouts.
The probe was said to have begun shortly before former chairman Atanu Chakraborty resigned in March 2026, citing concerns over “certain happenings and practices” within the bank that were not aligned with his personal ethics and values.
The latest controversy has intensified investor concerns around governance and compliance practices at India’s largest private lender, which has already faced scrutiny following Chakraborty’s abrupt departure earlier this year.
Despite the decline, analysts noted that the broader banking sector remained relatively stable, with investors closely monitoring whether the matter could trigger regulatory action or impact management continuity ahead of CEO Sashidhar Jagdishan’s term ending later this year.
