HDFC Bank fines top executives ₹1 lakh each over MSRDC deposit scheme
On July 27, 2026 HDFC Bank’s board imposed a fine of ₹1 lakh each on Managing Director and CEO Sashidhar Jagdishan, Chief Financial Officer Srinivasan Vaidyanathan and Group Head of Retail Assets Arvind Vohra. A special disciplinary committee of independent directors concluded that while the executives showed no malicious intent or personal gain, their conduct constituted “business overreach”. The board also issued warning letters to other staff involved and referred the matter to the Reserve Bank of India (RBI).
The fines relate to a deposit‑attraction arrangement the bank entered with the Maharashtra State Road Development Corporation (MSRDC) in 2017 and again in 2021. Media reports allege that about ₹45 crore (≈ $5.2 million) was routed through vendors and recorded as marketing expenses to incentivise MSRDC to place large deposits with HDFC Bank. The bank has denied wrongdoing, asserting that its internal audit, oversight and control systems are robust.
Entities: Arvind Vohra · HDFC Bank · Maharashtra State Road Development Corporation · Sashidhar Jagdishan · Srinivasan Vaidyanathan
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 3 SOURCES] The special disciplinary committee found no malicious intent but described the conduct as business overreach. (committee findings)
- [● 3 SOURCES] The matter was referred to the Reserve Bank of India. (Board decision)
- [● 3 SOURCES] The deposit arrangement involved the Maharashtra State Road Development Corporation in 2017 and 2021. (board report)
- [● 3 SOURCES] Approximately ₹45 crore was transferred through vendors as marketing expenses to facilitate the deposit scheme. (media reports cited in board review)
- [● 2 SOURCES] HDFC Bank denied the allegations and said it has robust internal audit and control systems. (bank statement)
- [● 3 SOURCES] HDFC Bank board fined Sashidhar Jagdishan, Srinivasan Vaidyanathan and Arvind Vohra ₹1 lakh each. (board disciplinary action)
- [● 3 SOURCES] HDFC Bank denied the allegations and said its internal controls are robust. (Bank statement)
- [● 3 SOURCES] HDFC Bank fined MD/CEO Sashidhar Jagdishan ₹1 lakh. (Board disciplinary action)
- [● 3 SOURCES] Around ₹45 crore was transferred to MSRDC via marketing‑expense channels. (Media reports cited in board documents)
- [● 3 SOURCES] HDFC Bank entered deposit arrangements with MSRDC in 2017 and 2021. (Board review)
- [● 3 SOURCES] HDFC Bank fined Group Head of Retail Assets Arvind Vohra ₹1 lakh. (Board disciplinary action)
- [● 3 SOURCES] HDFC Bank fined CFO Srinivasan Vaidyanathan ₹1 lakh. (Board disciplinary action)