HDFC Bank fires six employees for corrupt practices in vehicle loan business: Report
Many media reports have suggested that HDFC Bank was looking into allegations of misconduct in its vehicle financing business.
July 21, 2020 / 11:02 AM IST
HDFC Bank has reportedly sacked six executives over allegations of corruption and breach of corporate governance standards.
The private sector lender fired six senior and mid-level officials after an internal investigation found that they were involved in corrupt practices, according to a report by ET Now.
Moneycontrol could not independently verify the story.
HDFC Bank was looking into allegations of misconduct in its vehicle financing business. However, the bank did not respond to a request for comment by The Economic Times.
HDFC Bank's car loan customers were allegedly forced to buy GPS devices, which were sold by Trackpoint GPS, the report said.
"This is a bank approved product. It's a minuscule portion of the bank's portfolio — hardly 4,000-5,000 of these devices costing Rs 18,000-19,000 each were sold every month. The gross failure for the bank has been its audit which failed to spot the misdoing," a source told the publication.
"We had received some whistle-blowing complaints, internal enquiries carried out in the matter on the complaints received has not brought out any conflict of interest issue nor does it have any bearing on our loan portfolio," HDFC Bank Managing Director Aditya Puri said at the company's annual general meeting (AGM) on July 18.
"Enquiry did bring out another aspect related to personal misconduct exhibited by a set of individuals for which appropriate disciplinary actions have been taken," Puri added.
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