An internal HDFC Bank probe has reportedly found that two senior executives disclosed confidential business strategies and possible market-sensitive information to outsiders, although the bank has not confirmed those findings and says its review is still underway.
The reported findings were described by people familiar with the matter who requested anonymity because they were discussing confidential information, according to Business Standard. The executives oversee key businesses and functions at India’s largest bank by market value, the people said.
HDFC Bank began the investigation after some leaders became concerned that information might have been leaked, according to the report. The bank is continuing to examine whether any information was misused. The two executives have reportedly been informed of the findings, but the possible disciplinary action remains unclear.
An HDFC Bank spokesperson confirmed that an internal review was in progress but did not comment on the reported findings or the executives involved. “In line with our policies, an internal review into this matter is currently underway to gather and evaluate all relevant facts,” the spokesperson said by email. “Appropriate action will be taken based on the findings, once the review is complete.”
The bank said it was committed to maintaining high standards of ethics and governance and treated reports of potential violations seriously. The statement confirms the existence of a review, but does not independently establish that confidential business strategies or market-sensitive information were disclosed, or that any information was misused.
The reported investigation comes as HDFC Bank prepares for a change in senior leadership. Anup Bagchi, a veteran of rival ICICI Group, is scheduled to become chief executive on October 27. The appointment follows incumbent chief executive Sashidhar Jagdishan’s decision not to seek another term after six years leading the bank.
The bank has also faced recent management and boardroom changes. Then-chairman Atanu Chakraborty resigned abruptly in March, citing differences between his personal values and certain practices at the bank. An independent legal review commissioned by HDFC Bank later said his concerns were not substantiated, according to the report. Kaizad Bharucha, the deputy managing director and one of the bank’s longest-serving executives, has asked to leave at the end of December.
HDFC Bank, founded in 1994 as India opened its financial sector to greater private competition, became a major investment destination for international fund managers seeking exposure to India’s rising incomes and expanding consumer-credit market. Its market value was reported at about $115 billion, while its share price had declined about 28 per cent this year.
The internal review’s final findings, any disciplinary decisions and whether regulators receive further information remain pending. Until the bank completes the process, the reported disclosures and any possible misuse of information should be treated as allegations attributed to the unnamed sources rather than established findings.
