Shares of India’s private lender fell for a second session in a row, now down 5% in two sessions after a newspaper report said that the lender’s Audit Committee had ordered a formal “Internal Vigilance Investigation” into payments totalling Rs 45 crore to a PSU disguised as marketing spend.

The lender issued a clarification stating: We wish to state that in line with the highest corporate governance standards of the Bank, the Internal Audit function conducts reviews, identifies and presents its observations from time to time. As such, the observations of Internal Audit function are comprehensively addressed by the Bank and that applies to the matter in question.

“HDFC Bank continues to maintain sound financial and risk management practices, with robust systems of internal control and oversight. We remain committed to the highest standards of corporate governance and regulatory compliance,” the regulatory filing added.

A report in The Indian Express said the payments were allegedly made to the Maharashtra State Road Development Corporation (MSRDC), a state government agency, just days before former chairman Atanu Chakraborty resigned on March 18.

This order came after an internal audit of the bank’s marketing department, covering the FY25 period, flagged these payments and rated the department’s performance as “unsatisfactory,” the report said.

The Indian Express investigation, based on internal records, found that the payments were intended for Maharashtra State Road Development Corporation as “differential interest”, or interest paid above the specified rate on its deposits. However, instead of being directly credited to MSRDC’s account as interest income, the funds were allegedly routed through the bank’s marketing department and shown as contributions towards a road safety awareness campaign via four local vendors.

Records reviewed during the probe also indicate that the payout was approved during senior-level discussions attended by Sashidhar Jagdishan. According to testimonies by several officials in the internal investigation, Jagdishan participated in calls convened to examine ways the bank could compensate MSRDC and was part of the decision to route the differential interest through the marketing budget as a one-time arrangement.HDFC Bank Chief Marketing Officer Ravi Santhanam acknowledged in his testimony during the Vigilance probe that the marketing department acted as a “facilitator to camouflage differential interest reimbursement as marketing spend”.

Significantly, the Vigilance probe report was sent to two top committees: Audit Committee of the Board (ACB) on April 10, and the Nomination and Remuneration Committee of the board a week later, the media report said.

On March 18, part-time Chairman and independent director Atanu Chakraborty tendered his resignation. In his letter, Chakraborty pointed to certain developments and practices within the bank over the past two years that did not align with his personal values and ethics. “This is the basis of my aforementioned decision,” he wrote.

Since the development, HDFC Bank shares are down nearly 8%. The stock has slipped 23% in 2026.

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HDFC Bank, India’s largest private lender, reported its fourth-quarter business update on Saturday. The lender’s exchange filing showed that its average advances under management stood at Rs 29.64 lakh crore for the March 2026 quarter, marking a growth of around 10% compared to Rs 26.96 lakh crore in the corresponding period last year.

The bank’s period-end advances under management were approximately Rs 30.58 lakh crore as of March 31, 2026, up 10.2% from Rs 27.73 lakh crore a year ago. Meanwhile, period-end gross advances aggregated to about Rs 29.60 lakh crore, reflecting a growth of 12.0% over Rs 26.44 lakh crore as of March 31, 2025.

On the liabilities side, the bank’s average deposits stood at Rs 28.51 lakh crore in the March 2026 quarter, registering a growth of 12.8% compared to Rs 25.28 lakh crore in the year-ago period.

Within this, average CASA deposits were Rs 9.18 lakh crore, up 10.8% from Rs 8.29 lakh crore, while average time deposits came in at Rs 19.33 lakh crore, growing 13.7% from Rs 16.99 lakh crore.

The bank’s period-end total deposits were approximately Rs 31.06 lakh crore as of March 31, 2026, rising 14.4% from Rs 27.15 lakh crore a year earlier.

Period-end CASA deposits stood at around Rs 10.61 lakh crore, up 12.3% from Rs 9.45 lakh crore, while period-end time deposits were approximately Rs 20.45 lakh crore, registering a growth of 15.5% over Rs 17.70 lakh crore as of March 31, 2025.

Also read: Sobha Q4 biz update: Sales rise 11% YoY to Rs 2,039 crore as company closes FY26 with record figures

Shares of HDFC Bank have remained in focus following a leadership change at the top. Last month, the bank’s part-time Chairman and independent director, Atanu Chakraborty, resigned, citing that certain developments and practices within the bank over the past two years did not align with his personal values and ethics. “This is the basis of my aforementioned decision,” he said. Following the development, the stock has come under pressure, declining nearly 25% since the start of the year.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

State-owned lender Bank of Baroda (BoB) reported a 14% year-on-year (YoY) growth in its global business to Rs 30.78 lakh crore in the quarter ended March 31, 2026, compared with Rs 27 lakh crore in the year-ago period. Global deposits rose 12% in Q4FY26 to Rs 16.48 lakh crore, up from Rs 14.72 lakh crore in the corresponding quarter last year.

These figures are provisional and part of the PSU bank’s quarterly business update. The final numbers will be announced along with its earnings.

Domestic deposits rose 13% YoY to Rs 14 lakh crore in the quarter under review, compared with Rs 12.42 lakh crore in Q4FY25.

Global advances grew over 16% to Rs 14.30 lakh crore during the January-March quarter, up from Rs 12.30 lakh crore in the year-ago period.

Domestic advances grew 15% YoY to Rs 11.69 lakh crore, compared with Rs 10.21 lakh crore in the year-ago period. Within this, domestic retail advances surged 18% to Rs 3 lakh crore from Rs 2.56 lakh crore in Q4FY25.

The state-owned bank announced its Q4 updates late Thursday. Its shares settled 0.80% lower at Rs 250 on the NSE in the previous session.

In the third quarter of FY26 ended December 2025, BoB reported credit growth of 15% to Rs 13.44 lakh crore, compared with Rs 11.73 lakh crore at the end of the same quarter last fiscal.The lender also posted a 10% increase in total deposits to Rs 15.47 lakh crore, up from Rs 14.03 lakh crore in the year-ago period.

As a result, the bank’s total business (credit and deposits) rose 12.22% to Rs 28.91 lakh crore as of December 31, 2025, compared with Rs 25.76 lakh crore a year earlier.

Also read: PNB Q4 updates: Global business rises 11% YoY to Rs 29.72 lakh crore; advances jump 13%

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Indian banking regulator the Reserve Bank of India (RBI) has granted approval to Emirates NBD Bank (P.J.S.C) to acquire up to 74% stake in RBL Bank, marking a potential shift in ownership and strategic direction.

The approval was communicated via a letter dated April 1, 2026, ET had earlier reported, citing sources. The report said that an approval from the Securities and Exchange Board of India (Sebi) is also expected soon.

After Emirates NBD buys the 74% stake, it will become a promoter holder, crossing the 51% threshold as per the RBI’s conditions. The lender has no promoter, currently.

Following the transaction, RBL Bank will be classified as a foreign bank operating in wholly owned subsidiary (WOS) mode, with Emirates NBD as its parent.

The central bank has outlined a detailed regulatory framework for the transition. While most provisions applicable to foreign banks in subsidiary mode will apply, the RBI has relaxed certain governance norms, including the requirement for at least half of the board members attending meetings to be independent directors.

“The Reserve Bank has no objection to ENBD being classified as the promoter of RBL, subject to applicable Securities and Exchange Board of India regulations. However, the dilution requirement under paragraph 11 of Annex I of the Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025, dated November 28, 2025, will not be applicable to the Bank. The voting rights of ENBD shall be capped at 26% of the total voting rights of RBL, in accordance with section 12(2) of the Banking Regulation Act, 1949,” a company filing to the exchanges said.

Also read: 14 Vijay Kedia bets slump up to 68% as losses dominate FY26 scorecardImportantly, while Emirates NBD can hold up to 74% economic interest, its voting rights will be capped at 26% in line with the Banking Regulation Act, 1949. The RBI has also exempted the investor from the “single mode of presence” requirement temporarily, allowing flexibility until its existing Indian branches are merged with RBL Bank or within a year.

The approval remains valid for one year and is contingent upon additional clearances, including approval from the Government of India for foreign investment beyond 49%. The transaction must also comply with provisions under FEMA, SEBI regulations, and other applicable laws.

RBL Bank will now need to amend its Articles of Association to align with the new ownership structure and regulatory requirements, subject to RBI’s final approval.

This move underscores growing foreign interest in India’s banking sector and could potentially strengthen RBL Bank’s capital base, governance, and global integration.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)