HDFC Bank probes auto loan practices; stock down 2%

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

HDFC Bank share price was down over 2 percent in early trade on July 14 after the bank on July 13 said it has launched a probe into its auto lending practices following allegations against the conduct of a long-time executive who retired on March 31 this year.

"We would like to state that the executive concerned who was on an extension of service retired on March 31, 2020, in the normal course of his employment. The bank has a well-established process of investigating every complaint that it receives and takes actions as appropriate," an HDFC Bank spokesperson said.

The stock price has fallr in the last 7 days and was trading at Rs 1,057.95, down Rs 22.45, or 2.08 percent at 09:20 hours. It has touched an intraday high of Rs 1,069.95 and an intraday low of Rs 1,056.80. It was also one of the top index losers. It was also one of the most active stocks in terms of value with 11,62,561 shares being traded on NSE.

The allegations in HDFC Bank pertain largely to the professional conduct which raises issues about possible conflicts of interest, sources said, stressing the quality of the bank's auto loan book is strong.

The spokesperson said the "due process" was followed in this instance and asserted that the bank has followed "highest standards of governance and propriety at all times".

Munish Mittal, the bank's chief information officer has decided to move on to pursue higher studies at an overseas university, sources said.

According to Moneycontrol SWOT Analysis powered by Trendlyne, MFs have decreased their shareholding last quarter in the bank. The bank has declining net cash flow and is not able to generate net cash.

Moneycontrol technical rating is neutral with moving averages being bearish and technical indicators being neutral.