Market Chatter: HDFC Bank's $4.71 Million Allegedly-Disguised Payment to State-Owned Indian Board Under Media Scrutiny

MT Newswires Live05-27

India's HDFC Bank (HDB) allegedly paid higher interest to the state-owned Maharashtra State Road Development, The Indian Express newspaper reported on Wednesday.

In March, the audit committee of HDFC's board had ordered a probe into payments totaling 45 crore Indian rupees ($4.71 million) to the state entity, the news report said. The payments were routed through the HDFC Bank's marketing department rather than being booked as interest earned, The Indian Express alleged, based on its investigation of internal records.

Additionally, the bank's internal audit showed a payment of 39.7 crore Indian rupees to the same government agency, the newspaper reported, alleging it, too, was disguised as a marketing expense.

HDFC Bank did not immediately respond to a request for comment from MT Newswires.

Shares of HDFC Bank were down 2.6% in recent Wednesday premarket activity.

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