HDFC Bank on Wednesday rejected allegations of wrongdoing linked to reported payments worth ₹45 crore allegedly routed through its marketing department to a Maharashtra government agency. The country’s largest private lender said its internal oversight and audit mechanisms are robust and that all matters are handled as per established procedures. 

“The bank has robust internal oversight, audit and control processes and systems. All issues are dealt with in accordance with Bank’s established norms, and full process is always followed before final determination post any internal review. We strongly reject any assumptions of wrongdoing or culpability based on selective material,” the bank said in its statement.  

Report of internal vigilance investigation 

The clarification came after media reports claimed that the bank’s audit committee had initiated a formal ‘Internal Vigilance Investigation’ into payments totalling ₹45 crore that were allegedly disguised as marketing expenditure. 

According to the media reports, an internal audit of the bank’s marketing department for FY25 had flagged the transactions and rated the department’s performance as “unsatisfactory”. 

The reports further alleged that the payments were linked to the Maharashtra State Road Development Corporation (MSRDC) and were routed through the bank’s marketing department instead of being directly credited as interest payments. 

An investigation by The Indian Express, citing internal records, alleged that the payments were intended as “differential interest” paid above the specified rate on deposits. However, the funds were allegedly shown as contributions towards a road safety awareness campaign through four local vendors. 

The report also said the transactions took place shortly before former Chairman Atanu Chakraborty stepped down on March 18. 

Fortune India could not independently verify the allegations. 

Shares of HDFC Bank fell about 2.45% to ₹759.80 apiece around 1:45 pm on Wednesday following the reports. 

Support for HDFC Bank 

Notably, the two financial regulators, the Reserve Bank of India and the Securities and Exchange Board of India, have backed HDFC Bank, saying they found no material concerns in the matter. 

The bank had reported a strong financial performance for FY26, with deposits rising 14.4% during the year, outpacing loan growth of 10.2%. Net profit stood at ₹19,221 crore for the quarter ended March 31 while full-year profit came in at ₹74,671 crore, marking a year-on-year increase of 9% for the quarter and 10.9% for the fiscal year.