HDFC Bank Penalises CEO Sashidhar Jagdishan and Top Executives Over MSRDC Deposits: Here's Why Action Was Taken
HDFC Bank's board issued INR 1 lakh penalties and warning letters to CEO Sashidhar Jagdishan, CFO Srinivasan Vaidyanathan, and executive Arvind Vohra following an internal review of historical MSRDC deposits, concluding the actions constituted business overreach. According to a regulatory filing, the board met on July 23 to evaluate the committee's findings.
HDFC Bank has announced that its board has concluded an internal review regarding its historical deposit arrangements with the Maharashtra State Road Development Corporation (MSRDC), issuing formal warning letters and an INR 1 lakh monetary penalty each to three of its top executives.
The disciplinary action applies to Managing Director and Chief Executive Officer Sashidhar Jagdishan, Chief Financial Officer Srinivasan Vaidyanathan, and Group Head of Retail Assets Arvind Vohra. Other employees involved in the matter have also been issued warning letters. HDFC Bank Opening Bell Updates: Shares Eye Stability After Q1, US Probe News.
Findings of the Special Disciplinary Committee
The review was overseen by a Special Disciplinary Committee of Independent Directors, which examined the bank's arrangements with the state-owned infrastructure agency for mobilising deposits in 2017 and 2021. According to a regulatory filing, the board met on July 23 to evaluate the committee's findings. The investigation concluded that the actions of the employees amounted to "business overreach" rather than any fraudulent conduct, personal enrichment, or improper motive.
"Based on the findings and recommendation of the Special Disciplinary Committee of Independent Directors, the Board at its meeting held on July 23, 2026, concluded that the conduct of the employees involved constituted business overreach rather than any mala fide action, personal enrichment, or improper motive," the bank stated.
Potential Regulatory Divergence and Next Steps
Despite clearing the executives of malicious intent, the board noted that the execution of the deposit arrangements could have potentially diverged from applicable Reserve Bank of India (RBI) directions. In response, the board enforced administrative accountability by levying the monetary penalties and issuing formal warnings. HDFC Bank confirmed that the outcome of the internal review will be formally communicated to the RBI.
(The above story first appeared on LatestLY on Jul 27, 2026 07:22 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).