HDFC Bank’s internal probe has uncovered evidence suggesting that two senior executives shared confidential business strategies and potentially market-sensitive information with external parties, Bloomberg reported.
The investigation is ongoing, with the bank examining whether the information was misused. The executives, who are responsible for important business operations and functions, have been formally notified of the findings. However, it remains unclear what disciplinary measures they may face.
A spokesperson for HDFC Bank acknowledged that an internal review was underway but declined to discuss its findings or disclose the identities of the executives involved.
The spokesperson said the bank was gathering and assessing all relevant facts as part of its internal review, in accordance with its policies. Appropriate action would be taken after the investigation was completed and its findings evaluated.
According to Bloomberg, the findings were presented to senior management, including some board members, earlier this year.
HDFC BANK FACES LEADERSHIP CHANGES
The investigation comes at a crucial juncture for HDFC Bank as it prepares for a leadership transition amid recent disagreements at the board level and the departure of senior executives.
Anup Bagchi, a veteran of the ICICI Group, is scheduled to assume the role of chief executive on October 27. He will replace Sashidhar Jagdishan, who chose not to seek another term after leading the bank for six years.
In March, then-chairman Atanu Chakraborty stepped down, citing differences between his personal values and certain practices at the lender. An independent legal review commissioned by the bank later concluded that his concerns were not substantiated.
Kaizad Bharucha, the deputy managing director and one of HDFC Bank’s longest-serving executives, has also requested to leave the organisation at the end of December.
The report noted that HDFC Bank’s shares had declined by approximately 28% in 2026 as of October 21. Valued at around $115 billion, the lender has spent decades establishing a reputation for cautious management, strong internal controls and consistent profitability.
The bank reiterated its commitment to high standards of ethical conduct and corporate governance, adding that it treated allegations of potential violations seriously. The internal investigation remains incomplete, and HDFC Bank has neither publicly named the executives involved nor announced any final disciplinary decisions.
