HDFC Bank is facing investigation over an alleged payment of ₹45 crore [1] to the Maharashtra State Road Development Corporation (MSRDC).
The controversy centers on whether the bank bypassed Reserve Bank of India rules regarding differential deposit pricing. If the payment was an improper interest incentive disguised as a marketing cost, it could signal a regulatory breach by one of India's largest financial institutions.
Reports indicate the bank paid approximately ₹45 crore [1] to the MSRDC in May 2026 [2]. While the transaction was booked as a marketing expense, critics suggest the payment was actually interest on deposits [3]. This distinction is critical because regulatory frameworks restrict how banks price deposits to ensure fair competition, and financial stability.
"Anything clandestine is not necessarily acceptable," Ritu Singh said during a CNBC TV18 interview [4].
HDFC Bank has rejected the allegations. A spokesperson for the bank said, "We follow robust internal oversight, audit and control processes" [5]. The bank maintains that the payment was a routine marketing expense and that no wrongdoing occurred [5].
The scrutiny follows previous internal tensions. Atanu Chakraborty, a former executive, said, "Certain activities within the bank were not aligned with my personal values" [3].
Investors reacted to the news in late May, with some reports noting that bank shares tumbled as the row over deposit payments rattled the market [2]. The investigation seeks to determine if the ₹45 crore [1] payment was a legitimate business cost or a method to attract deposits through prohibited means.
“"Anything clandestine is not necessarily acceptable."”
This investigation tests the transparency of HDFC Bank's accounting practices and its adherence to RBI's strict guidelines on deposit pricing. If the payment is found to be a disguised interest payment, it could lead to regulatory penalties and further erode investor confidence in the bank's internal governance.
