As per media reports, the bank allegedly failed to disclose that an the Audit Committee of the Board (ACB), under the chairmanship of M D Ranganath, had on March 12 ordered a formal “Internal Vigilance Investigation” into payments totalling Rs 45 crore made to the Maharashtra State Road Development Corporation (MSRDC), a state government agency, during FY2024 and FY2025.

According to a news report, the bank had offered an interest rate of 6.01% to MSRDC at a time when its prevailing rate stood at 3.5%, resulting in a differential of 2.51%.

Media report further stated that the Rs 45 crore in payments, which were meant for MSRDC as “differential interest” i.e., paid over and above the specified deposit rate, were directly credited to MSRDC’s account as interest income through the bank’s marketing department. The payments were disguised as contributions to a road safety awareness campaign through four local vendors.The report suggested that the payout arrangement was approved during senior-level discussions attended by Sashidhar Jagdishan, where a higher interest rate for MSRDC was allegedly agreed upon verbally.

Meanwhile, HDFC Bank denied the allegations of wrongdoing and clarified that its internal oversight, audit, and control mechanisms remain robust.

HDFC Bank is India's largest private sector lender. As of 31st March 2026, the bank's distribution network was at 9,689 branches and 21,172 ATMs across 4,175 cities/ towns as against 9,455 branches and 21,139 ATMs across 4,150 cities/ towns as of 31 March 2025.

The bank reported 9.11% jump in standalone net profit to Rs 19,221.05 crore in Q4 FY26 as against Rs 17,616.14 crore in Q4 FY25.Total income rose marginally to Rs 89,808.90 crore in Q4 FY26 from Rs 89,487.99 crore in the corresponding quarter last year.