Shares of HDFC Bank fell 2.2 per cent on Wednesday after a media report alleged that the private lender made illegal payments to a Maharashtra government department to attract large deposits. The stock traded at ₹764.30 on the NSE at 11.41 am after hitting an intraday low of ₹761.25, compared with its previous close of ₹778.90.

According to a report by The Indian Express, citing documents and sources, HDFC Bank paid ₹45 crore to the Maharashtra State Road Development Corporation to secure large deposits. Banking regulations do not permit lenders to offer varied interest rates or additional incentives to depositors outside prescribed norms.

The report alleged that the bank disguised the payments as marketing expenditure to incentivise the state-run corporation to place deposits with the lender. It further claimed that HDFC Bank CEO Sashidhar Jagdishan was aware of the payments.

The allegations weighed on investor sentiment amid concerns over potential regulatory scrutiny and reputational risks for the country’s largest private sector lender by market capitalisation.

While Chakraborty had not made specific allegations, he had said that practices at the bank were not in line with his “personal” values and ethics.

Legal firms appointed ‌by HDFC Bank to review the claims have yet to ​find material lapses in processes followed by the bank, Reuters reported earlier this ⁠month.

The outcome of the legal review is awaited.

HDFC ⁠Bank has also yet to submit an application for the central bank to ‌reappoint CEO Jagdishan, whose three-year term ends in October.

($1 = 95.7600 rupees)

Published on May 27, 2026