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HDFC Bank penalises CEO over deposit dealings
Business Standard··28 Jul
HDFC Bank's board issued warning letters and a Rs 1 lakh penalty each to CEO Sashidhar Jagdishan, CFO Srinivasan Vaidyanathan and retail head Arvind Vohra on Monday. The action follows a review of the bank's 2017 and 2021 deposit deals with the Maharashtra State Road Development Corporation. The board called the lapse business overreach rather than misconduct or personal gain.
Prism
What It Means For You
- Bank customers gain a clearer public example of how executive misconduct claims get resolved internally.
- Shareholders watching HDFC Bank's reappointment decision now have a documented governance episode to weigh.
- The case shows regulators expect banks to report leadership lapses directly to the RBI.
What's Happening
- HDFC Bank's board penalised CEO Sashidhar Jagdishan and two other executives Rs 1 lakh each.
- The action follows a review of the bank's MSRDC deposit arrangements from 2017 and 2021.
- The board called the conduct business overreach rather than misconduct or personal enrichment.
A CEO Penalised Ahead of His Own Reappointment
- Media reports said about Rs 45 crore was paid to MSRDC as marketing expense.
- Three US law firms have opened investigations into potential securities law violations.
- Jagdishan's current three-year term expires in October, with reappointment still under board discussion.
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