HDFC Bank, India's largest private sector lender, is conducting an internal investigation regarding an alleged leak of confidential data. According to sources, two executives have been potentially identified in this situation, and subsequent actions will depend on the investigation's findings.
A bank representative told Business Standard that the bank takes any reports of potential breaches seriously. He clarified that, in line with bank policies, an internal review is currently underway to gather and assess all relevant facts. The bank emphasized that it does not comment on active internal investigations to protect the integrity of the process and the confidentiality of all parties, and that appropriate measures will be taken upon completion of the review.
The bank representative added that the institution is committed to maintaining the highest standards of ethics and governance outlined in its Code of Conduct.
A source familiar with the developments suggested that this internal investigation might be related to a leak of information concerning the deposits of the Maharashtra State Road Development Corporation (MSRDC). This issue caused disputes and led to three senior bank executives being fined one lakh each for exceeding their business authority. Among those fined were Sashidhar Jagdishan, Managing Director & CEO, Srinivasan Vaidyanathan, Chief Financial Officer (CFO), and Arvind Vohra, Head of Retail Assets. They received these fines following an internal review on this matter.
It was also reported that the report stated the bank paid approximately 45 crore to a state-owned company during the 2024 and 2025 financial years through marketing expenses classified as 'differential interest.'
The current internal investigation is taking place amid Anup Bagchi's preparations to take over as the bank's new MD&CEO. Jagdishan will leave his post on October 26, and Bagchi is set to assume duties on October 27.
In his last analyst call after six years of leadership, Jagdishan stated that he is leaving behind a strong foundation that demonstrated strength and resilience in overcoming regulatory embargoes, the Covid-19 pandemic, complex mergers amidst concerns over tightening monetary policy, as well as corporate governance issues, which have since been resolved.
The bank has faced questions regarding its governance practices since the resignation of its former non-executive chairman, Atanu Chakraborty, in mid-March, who claimed that certain 'events and practices' within the bank did not align with his values and ethics.
