HDFC Bank sacks six officials following internal probe: Five questions answered

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26 Aug, 2025 12:21

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HDFC Bank has sacked at least six employees after an internal investigation found that these employees violated the code of conduct and were found involved in violation of corporate governance practices.

What is the issue all about?

Bank’s internal investigations discovered certain irregularities in the vehicle finance division. Allegedly, some employees of the bank engaged in forced selling of GPS devices to customers bundling these with auto loans.

Employees reportedly insisted the customers to buy the product as a precondition to clear the loan.

Also Read: HDFC Bank fires six employees for corrupt practices in vehicle loan business: Report

How much these devices cost?

According to reports, each devices cost Rs 18,000-Rs 19,500 per piece.

Who sold these equipment?

According to reports, a company called Trackpoint GPS, a Mumbai-based firm, sold these devices to HDFC Bank customers. The company had an alliance with the bank.

Why the controversy?

Under RBI norms, banks cannot force any customer buy any product. Banks can have tie-ups with suppliers but the sale of products should be optional. Here, the bank allegedly forced the customer to buy the product bundling it with the loan, which is an irregularity. Hence the controversy.

There were allegations that bank’s former auto loan head Ashok Khanna was involved in the GPS issue and subsequently was asked to go. However, the bank clarified that Khanna retired after getting a one-year extension.

Also Read: What should investors do with the HDFC Bank stock post Q1 results?

How did HDFC Bank respond to the allegations?

In the bank’s AGM, HDFC Bank’s outgoing managing director and CEO, Aditya Puri said bank conducted an internal probe and found personal misconduct issues for which appropriate action has been taken against the concerned employees. Puri said Khanna participated in the enquiry.

In a response to Moneycontrol, bank’s spokesperson said, the bank has nothing more to add beyond what Puri said at the AGM.