HDFC Bank share price today: Shares of HDFC Bank, India’s largest private sector bank, dropped as much as 2% on Wednesday after a newspaper report alleged that the bank had made improper payments to a state government agency in an effort to attract deposits.At 1:38 PM, shares of HDFC Bank were trading at Rs 760.70, down 2.34% on the National Stock Exchange.Reuters quoted a newspaper report citing documents and sources, saying that the bank allegedly paid Rs 45 crore ($4.7 million) to the Maharashtra State Road Development Corporation to secure large deposits. Banking regulations do not permit lenders to offer differential interest rates to depositors.The report further claimed that the additional payments were allegedly routed as marketing expenses to incentivise the agency to place deposits with the bank. It also alleged that CEO Sashidhar Jagdishan was aware of these transactions.However, HDFC Bank has refuted the claims. An HDFC Bank spokesperson told Reuters that the bank maintains strong internal monitoring, auditing and control mechanisms across its operations.“All issues are dealt with in accordance with established norms, and full process is always followed before final determination post any internal review. We strongly reject any assumptions of wrongdoing or culpability based on selective material,” the spokesperson said.The bank’s stock has declined 9.5% since March 19, when Atanu Chakraborty unexpectedly resigned as part-time chairman, triggering fresh concerns over governance standards at the lender.Although Chakraborty did not make any direct allegations at the time, he had said that certain practices within the bank were not aligned with his “personal” ethics and values.Reuters had earlier reported this month that legal firms appointed by HDFC Bank to examine the allegations had not yet identified any material procedural lapses. The findings of the review are still awaited.The bank has also not yet filed an application with the Reserve Bank of India seeking the reappointment of CEO Sashidhar Jagdishan, whose current three-year term is set to end in October.
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