HDFC Bank gets administrative warning from Sebi over delayed disclosure of mortgage head's resignation in March

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26 Aug, 2025 12:21

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India's largest lender in terms of market capitalisation, HDFC Bank has received an administrative warning from capital market regulator Sebi, second in nearly a week, over a three-day delay in disclosing the resignation of Arvind Kapil - head of mortgage business - in March this year, the bank informed through a company filing on December 16.

Sebi's communication, sent on December 10 to the lender, took note of the violations seriously and said, "You are, therefore, warned to be careful in the future and advised to exercise due caution in future and avoid recurrence of such instances, failing which appropriate enforcement action may be initiated..."

"You are advised to take corrective steps, to place this communication and the corrective steps before the Board of Directors and disseminate a copy of the communication on the website of BSE and NSE," Sebi's letter added.

The warning letter raps the lender over violation of clauses of Sebi's Listing Regulations, however, the bank added that the administrative warning has no financial or operational impact.

The board of HDFC Bank had on March 28 approved the appointment of Sumant Rampal as Group Head - Mortgage Business with immediate effect in place of Arvind Kapil, in a communication to the stock exchange. Arvind Kapil had served as HDFC Bank’s Group Head overseeing the mortgage banking business with a book size of Rs 7.5 lakh crore, where he is responsible for managing the entire Home Loans portfolio, Loan Against Property (LAP), and HDFC Sales Private Limited.

Kapil joined Poonawalla Fincorp as the Managing Director & Chief Executive Officer for a period of five years effective from June 24, 2024.

Earlier in December, Sebi had issued an administrative warning to HDFC Bank alleging non-compliances with certain merchant banking rules, as revealed in an observation after an internal inspection, the lender had informed on December 12. Read more here.