HDFC Bank slips 2% after report flags ₹45 crore probe

What triggered the fall in HDFC Bank

HDFC Bank Ltd, among India’s most valuable listed companies, came under pressure in Wednesday’s trade after an Indian Express report alleged irregular classification of payments linked to a state-run entity. The stock was reported to be down about 2% during the session, with the decline tied to the report’s claim that certain payouts were routed through the bank’s marketing department. The report said the payments were allegedly used to provide a higher effective interest rate to a state government agency. The development brought renewed attention to governance and disclosure issues around India’s largest private-sector lender at a time when investor sensitivity to boardroom signals remains high.

Indian Express report: alleged “camouflaged” marketing spend

According to the Indian Express investigation cited in the market report, payments totalling ₹45 crore were made to the Maharashtra State Road Development Corporation (MSRDC) during FY2024 and FY2025. The report described these payments as “differential interest”, meaning interest over and above the specified rate on deposits. It further said the amounts were credited directly to MSRDC’s account as interest earned, but routed via the bank’s marketing department.

The report added that the payments were disguised as contributions to a road safety awareness campaign through four local vendors. It also suggested that the payout was approved in the presence of HDFC Bank’s MD and CEO Sashidhar Jagdishan during senior-level discussions where a higher rate for MSRDC was “verbally” agreed upon.

Audit Committee order and the internal vigilance investigation

The report said the bank did not disclose that the Audit Committee of the Board (ACB), chaired by M D Ranganath, ordered a formal “Internal Vigilance Investigation” on March 12. The alleged probe, as described in the report, relates to the ₹45 crore in payments to MSRDC during FY2024 and FY2025.

The market reaction reflected concern around how such payments were characterised and whether internal controls and disclosures were adequate. The reference to the audit committee’s direction also brought focus on governance processes, including how quickly findings may be shared with shareholders and regulators, if required.

Stock moves: intraday drop and mixed price references

Following the development, the stock was reported to have fallen 2.27% to an intraday low of ₹761.25. The same market update also stated that the scrip was later trading 1.98% lower at ₹163.55. Separately, another market snapshot said the share closed at the BSE down 0.34% at ₹1,557.3, with 0.81 lakh shares traded, and a day’s trading band of ₹1,554.7 to ₹1,573.55.

The source material includes multiple price references across updates, indicating different feeds or time stamps being cited. What remained consistent across the narrative was that the stock saw selling pressure around the report and governance-related headlines.

Market capitalisation hit and Airtel’s ranking change

The reported market value erosion was material. HDFC Bank’s market capitalisation was stated at ₹11,75,125.05 crore compared with ₹11,99,374.28 crore on Tuesday, implying a decline of ₹24,249 crore. Another snapshot listed “Total Market Cap” at ₹11,96,921.25 crore and “Free Float Market Cap” at the same level.

In a separate market context update, Bharti Airtel was reported to have overtaken HDFC Bank to become India’s second most valuable listed company. Airtel shares rose over 2%, taking its market capitalisation to around ₹11.8 lakh crore, while HDFC Bank’s market cap was described as nearly ₹11.7 lakh crore after the decline.

Broader market backdrop: oil prices and risk sentiment

The day’s moves came against a shifting macro narrative. Indian equities were also reported to have surged over 1% on Wednesday, reversing early losses, after a report suggested the US and Iran were nearing a deal to end their conflict. The same update linked the rebound to a steep decline in oil prices and a broad-based rally.

That broader support, however, did not prevent stock-specific concerns from weighing on HDFC Bank. For a large index constituent, governance headlines can dominate near-term price action even when benchmarks are firm.

Governance context: chairman resignation and earlier sell-off

Investor focus on governance has been heightened since March 2026, when Atanu Chakraborty, the part-time chairman of HDFC Bank, submitted a resignation letter dated March 18. The letter said certain happenings and practices over the past two years were “not in congruence with my personal values and ethics.” The next day, March 19, the stock was reported to have fallen 8.7% in a single session, with broader market declines amplified by HDFC Bank’s roughly 12% weight in the Nifty 50.

The account also stated the stock hit a 52-week low of ₹750 by March 23 and slipped further to ₹731 by March 30. Another update said the stock extended losses in a subsequent session, trading around ₹784.75, down 1.69% from a previous close of ₹800, after a 5.1% fall the prior day.

Reuters legal review mention and CEO reappointment overhang

The material also cited a Reuters report stating that independent legal reviews found no major governance lapses. That update said the finding eased investor concerns and “clears the path” for CEO Sashidhar Jagdishan’s reappointment, following the chairman’s earlier resignation. This remains relevant because the governance narrative around senior management continuity can shape institutional positioning, particularly in large financials.

Key facts table

Market impact and what investors are watching

The immediate market impact, based on the cited figures, was a sharp intraday decline and a market-cap drop of about ₹24,249 crore. The ranking shift with Bharti Airtel overtaking HDFC Bank in market value underscored how quickly sentiment can change in megacaps when headlines turn adverse.

Going forward, the focus is likely to remain on what the internal vigilance investigation, ordered on March 12 as per the report, concludes and whether any further disclosures follow. The parallel mention of an independent legal review finding no major governance lapses also frames the debate around whether recent headlines are isolated allegations or part of a broader governance concern.

Conclusion

HDFC Bank’s stock weakness on Wednesday was linked to a report alleging ₹45 crore in payments to MSRDC were routed as marketing spend, alongside a claimed audit-committee-ordered internal vigilance investigation dated March 12. With governance already a sensitive topic since the March resignation of the part-time chairman, the next set of official updates from the bank and any follow-through on the investigation will be key milestones investors track.