HDFC Bank share price rebounded in Monday’s trading session, snapping its three-session losing run. The banking stock was trading 0.13% higher on the NSE.
The stock opened at ₹749 apiece today, compared with the previous close of ₹744.55 on Friday last week. The stock touched an intraday high of ₹752.35 on the NSE.
shares had declined 5% over the last three sessions following a report by The Indian Express that it paid ₹45 crore to the Maharashtra State Road Development Corporation (MSRDC), with the transactions reportedly booked as marketing expenses to effectively provide higher returns on deposits.
The report has reignited concerns over governance standards at India’s largest private-sector bank and comes just months before the scheduled October reappointment of Managing Director and CEO Sashidhar Jagdishan. However, market experts believe the development is unlikely to affect his reappointment prospects.
The report further stated that an undisclosed development occurred on 12 March, six days before former chairman Atanu Chakraborty stepped down, when the board’s audit committee, led by M.D. Ranganath directed a formal internal vigilance probe into the payments made during FY24 and FY25.
Chakraborty resigned unexpectedly in March, citing certain developments and practices within the bank that he felt were inconsistent with his personal values and ethical standards.
The report further alleged that the payments were structured as “differential interest” tied to deposits received from MSRDC. Rather than being recorded directly as interest expenses, the funds were reportedly routed through the bank’s marketing division and accounted for as contributions to a road-safety awareness campaign executed through local vendors.
“The bank has robust internal oversight, audit and control processes and systems. All issues are dealt with in accordance with the bank’s established norms, and the full process is always followed before final determination post any internal review,” the bank said in a statement responding to the allegations.
Meanwhile, in an exchange filing on May 29, HDFC Bank informed that it has allotted 13,16,960 equity shares to the employees under its Employees Stock Options Scheme (ESOS).
“The Paid-up Share Capital of the Bank will accordingly increase from 15,39,63,32,196 equity shares of Re. 1/- each to 15,39,76,49,156 equity shares of Re. 1/- each,” the company said.
HDFC Bank share price trend
share price trend has largely remained negative amid weak market sentiment. The private lender stock has fallen by 5.20% in a week and 3.34% in a month.
Furthermore, the stock witnessed a steep decline of over 25% on a year-to-date (YTD) basis and 23% in a year.
Looking at the broader level, HDFC Bank shares have lost 7% in three years and 1.32% in five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.