Why HDFC Bank’s board has imposed a Rs 1 lakh penalty each on its MD, CFO and Group head

HDFC Bank's board imposed a Rs 1 lakh penalty each on MD & CEO Sashidhar Jagdishan, CFO Srinivasan Vaidyanathan, and Group Head (Retail Assets) Arvind Vohra for divergence from RBI directions in the MSRDC matter.

The board also issued warning letters to other employees involved in mobilizing large deposits from MSRDC between 2017 and 2021 through alleged payment of about Rs 45 crore under marketing expenses.

The board concluded the actions amounted to business overreach without mala fide intent, personal gain, or improper motive.

The decision followed recommendations from a Special Disciplinary Committee of Independent Directors and the bank will formally communicate the matter to the RBI.

Former Chief Election Commissioner Rajiv Kumar became HDFC Bank's part-time chairman effective July 15, 2026, shortly before the disciplinary action.