HDFC Bank: MSRDC deposit review concluded; CEO reappointment decision pending

Research evidence excerpt

HDFC Bank: MSRDC deposit review concluded; CEO reappointment decision pending

J P M O R G A N Asia Pacific Equity Research

28 July 2026

HDFC Bank Overweight

HDBK.NS, HDFCB IN

MSRDC deposit review concluded; CEO Price (27 Jul 26):Rs739.55

reappointment decision pending Price Target (Sep-27):Rs990.00

Event summary: HDFC Bank said in an exchange filing that its board has India Financials

ACconcluded an internal review into a deposit-garnering arrangement with Anuj Singla

Maharashtra State Road Development Corporation (MSRDC) undertaken in 2017 (91-22) 6157-3590

and 2021. At its July 23, 2026, meeting, the board, acting on recommendations anuj.singla@jpmchase.com

from a Special Disciplinary Committee of Independent Directors, determined that J.P.Tower,MorganSantacruz(E),India PrivateMumbaiLimited,- 400098,J.P. MorganSEBI

the conduct reflected “business overreach” rather than any mala fide intent, Registration: INH000001873, (91-22) 6157-3000.

personal enrichment or improper motive, but noted potential divergence from Harsh Wardhan Modi

applicable RBI directives. The board approved warning letters across the group (65) 6882-2450

and imposed a monetary penalty of Rs 0.1mn each on three senior executives, harsh.w.modi@jpmorgan.com

J.P. Morgan Securities Singapore Private Limited/

namely the MD and CEO, the CFO, and Group Head for Retail Assets, and directed J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

that the matter be communicated to the Reserve Bank of India. Morgan Broking (Hong Kong) Limited

Shivansh Puri, CFA

Our view: We believe the board’s actions (fines and warning letters) should help (91-22) 6157-5077

bring closure to the MSRDC deposit-arrangement matter, including prior media- shivansh.puri@jpmchase.com

J.P. Morgan India Private Limited, J.P. Morgan