New Delhi: HDFC Bank has found evidence that two senior executives allegedly shared confidential business strategies and potentially market sensitive information with outsiders, according to findings from an ongoing internal investigation.
The executives oversee key business areas and functions at the lender. The investigation began after concerns emerged among senior leaders about possible information leaks. The bank is continuing to examine whether the information was misused, and the outcome of the inquiry remains pending.
HDFC Bank has acknowledged that an internal review is underway but has not disclosed the identities of the executives or commented on the specific findings. The bank has stated that it will evaluate all relevant facts and take appropriate action after completing the review. It has also reiterated its commitment to ethical conduct, strong governance and addressing potential policy violations.
The development comes at a sensitive time for the lender, which has a market value of approximately $115 billion and has built its reputation on conservative management, financial discipline and consistent profitability. Its shares have declined around 28 per cent this year, adding to the challenges facing the institution.
The investigation’s findings were reportedly presented to senior management and some board members earlier this year. Both executives have been formally informed of the findings, although the disciplinary action, if any, remains unclear.
The issue adds to the challenges confronting Anup Bagchi, a veteran of the ICICI Group who is scheduled to take over as HDFC Bank’s chief executive on October 27. He will inherit the leadership position following the decision of incumbent managing director and chief executive Sashidhar Jagdishan not to seek another term after six years in office.
The bank has also faced internal disagreements in recent months. In March, chairman Atanu Chakraborty resigned unexpectedly, citing differences between his personal values and certain practices at the institution. An independent legal review commissioned by the bank subsequently found that his concerns were not substantiated.
Meanwhile, deputy managing director Kaizad Bharucha has sought to leave the bank at the end of December.
Founded in 1994, HDFC Bank has grown into one of India’s most prominent private sector lenders, attracting international investors seeking exposure to the country’s expanding economy and consumer credit market. The ongoing investigation and leadership changes present fresh challenges as the bank seeks to maintain investor confidence and protect its longstanding reputation.
