HDFC Bank denies irregularities in Rs 45 crore MSRDC payment case amid scrutiny

HDFC Bank on Wednesday rejected reports alleging irregularities in the handling of Rs 45 crore linked to the Maharashtra State Road Development Corporation (MSRDC), pushing back against suggestions that the amount was routed through its marketing department as part of a disguised payment arrangement.

The bank said its internal oversight, audit and control systems remain robust and maintained that all matters are handled according to established procedures.

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The story gets short shrift from HDFC Bank

In a statement carried by multiple outlets, the bank said, “We strongly reject any assumptions of wrongdoing or culpability based on selective material.” The lender added that “all issues are dealt with in accordance with bank’s established norms.”

While The Economic Times reported a similar clarification from the bank saying it was rejecting any assumptions of wrongdoing or culpability.

A closer look appears to have been ordered

The clarification followed reports in The Indian Express that alleged HDFC Bank had paid Rs 45 crore to MSRDC to attract large deposits.

The publisher claimed the payments were linked to “differential interest” — interest paid above the specified rate on deposits — and that the sums were routed through the marketing department and shown as spending on a road safety awareness campaign through local vendors rather than being directly credited as interest income.

The bank’s Audit Committee had ordered a formal “internal vigilance investigation" after an internal audit of the marketing department for FY25 reportedly flagged the payments and rated the department’s performance as "unsatisfactory".

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Markets take a dim view of the affair

The matter came under scrutiny around the time former part-time chairman Atanu Chakraborty resigned on March 18. Legal firms appointed by HDFC Bank had not found any material lapses in the bank’s processes so far, though the final outcome of the review is still awaited.

As of Wednesday afternoon, HDFC Bank shares had fallen about 2.45% after the reports surfaced.

The bank has not publicly confirmed any wrongdoing, and the matter remains one of scrutiny and denial rather than established findings.