'Extra payout' to Maharashtra PSU: HDFC board slaps Rs 1 lakh fines on MD, CFO
HDFC Bank board imposed a Rs 1 lakh penalty each on MD & CEO Sashidhar Jagdishan, CFO Srinivasan Vaidyanathan, and group head Arvind Vohra, and issued warning letters following an internal review of deposit arrangements with Maharashtra State Road Development Corporation in 2017 and 2021.
The review found instances of 'business overreach' but no evidence of mala fide intent or personal gain.
The action comes as the Reserve Bank of India pushes boards for greater oversight, and three months before Jagdishan's term as CEO ends in October 2026.
The bank acknowledged potential divergence from RBI directions regarding the arrangement, where additional payouts to MSRDC were allegedly routed as 'marketing expenses', and will formally communicate the matter to the RBI.
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