HDFC Bank calms fears, says no loss to the bank from vehicle loan unit probe

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Published: July 14, 2020 2:53 PM

"It is... important to clarify here that this matter is not related in any manner whatsoever to the lending aspect of the business. Therefore there's no question of this having any bearing on 'loan book' or causing any loss to the bank," a bank spokesperson said.

HDFC Bank, HDFC Bank vehicle loan unit probe, HDFC loan book, Ashok Khanna, latest news on HDFC bankThe bank on Monday initiated a probe on the lending practices following allegations against the conduct of a key executive in the auto lending business.

Largest private sector lender HDFC Bank on Tuesday said the probe on vehicle finance lending practices does not have any bearing on loan book, and will not cause any loss to the bank. “It is… important to clarify here that this matter is not related in any manner whatsoever to the lending aspect of the business. Therefore there’s no question of this having any bearing on ‘loan book’ or causing any loss to the bank,” a bank spokesperson said.

The bank on Monday initiated a probe on the lending practices following allegations against the conduct of a key executive in the auto lending business. The allegations pertained largely to the professional conduct which raised issues about possible conflicts of interest, sources had said.

The spokesperson reiterated that the Bank has a robust policy and process to deal with complaints and allegations and take action as appropriate.

“The process and the outcome of dealing with such complaints is an internal matter of the Bank where we are required to be guided by our policy on disclosure. Suffice to say that as a Bank, we’ve always upheld the highest standards of governance and propriety at all times and will continue to do so,” the statement added.

The statement issued on Tuesday further added that the executive concerned “Ashok Khanna, who was on an extension of service retired on March 31, 2020, in the normal course of his employment”.

The spokesperson also confirmed that chief information officer has also decided to move on to pursue higher studies at a foreign university and is still serving the notice period.

“Successful, mature organisations have it in them to take executive exits in their stride. We have a strong leadership pipeline that has stood us well so far and will do so as we stay on a strong and consistent path of growth into the future,” the statement added.

The HDFC Bank scrip was trading 2.26 per cent down at Rs 1,056.00 a piece on the BSE at 1241 hrs, as against a 1.65 per cent correction on the benchmark.

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