HDFC Bank ‘strongly’ rejects allegations of wrongfully transferring money:Turns down reports of remitting ₹45 crore to Maharashtra govt

India’s biggest private sector lender, HDFC Bank has ‘strongly’ rejected allegations of wrongfully transferring ₹45 crore to a Maharashtra government agency through its marketing department. We strongly reject any assumptions of wrongdoing or culpability based on selective material. -HDFC Bank spokesperson The bank’s spokesperson, in a statement, said its internal oversight and audit mechanisms are robust and that all matters are handled as per established procedures. The lender also released a clarification statement on the website of the Bombay Stock Exchange (BSE.) To read the entire press release, click on this link: 85f0c3c9-80db-4632-8b7f-01eb2683ee07.pdf All issues are dealt with in accordance with the bank’s established norms, and the full process is always followed before final determination post any internal review, the statement said. The clarification came after media reports claimed that the bank’s audit committee had initiated an investigation on the matter of transferring ₹45 crore to Maharashtra State Road Development Corporation (MSRDC) that were allegedly disguised as marketing expenditure. According to reports, the payments were allegedly made to the Maharashtra government undertaking just days before former chairman Atanu Chakraborty had resigned on March 18.
Chakraborty, in a surprise move, had resigned as chairman of HDFC Bank, citing ethical concerns, on March 18.
This was the first time that the part-time chairman of HDFC Bank left mid-way, raising concerns over its functioning. In an earlier regulatory filing, HDFC Bank had said Chakraborty had on March 18 tendered his resignation as the part-time chairman and independent director of the bank with immediate effect. Earlier controversy regarding HDFC Bank’s CEO: Earlier also, the HDFC Bank was embroiled in a separate controversy, when uts CEO and MD, Sashidhar Jagdishan, was accused of ₹2.05 crore bribery scam with Lilavati Kirtilal Mehta Medical (LKKM) Trust which runs the well-known Lilavati Hospital in Mumbai. The frequent emergence of controversies regarding the lender has weighed on investor sentiments as the shares have faced selling pressure in recent past. HDFC Bank share price performance: