HDFC Bank shares tumble over 2% after Rs 45 crore ‘shadow deal’ allegations
May 27, 2026
HDFC Bank shares fell over 2% in intraday trade after an Indian Express report highlighted details of an internal probe linked to alleged violations of RBI and bank norms. Here’s what investors are tracking.
The stock slipped as much as 2.27% intraday after IE report claimed “Audit Committee of Board (ACB) had ordered a formal internal Vigilance Investigation into payments totalling Rs 45 crore made to Maharashtra State Road Development Corporation (MSRDC), a state government agency, during FY2024 and FY2025.”
“Interviews with bank officials and scrutiny of internal documents reveal that the vigilance inquiry — conducted between March and April this year — concluded that more than 10 top officials bore responsibility. These include: MD & CEO Jagdishan; CFO Srinivasan Vaidyanathan and Chief Marketing Officer Ravi Santhanam,” report published on May 27 2026 stated.
The RBI and HDFC Bank did not respond to detailed questionnaires sent by The Indian Express at the time of publication.
The insights have gone public months after Atanu Chakraborty resigned as HDFC Bank chairman on March 18. He had cited “certain happenings and practices within the bank” that were not in “congruence” with his personal values and ethics, as the reason behind his exit.
Why banking stocks react sharply
Banking stocks are often highly sensitive to developments linked to governance, internal controls, audit findings and compliance-related matters.
Even when the financial value involved is relatively small compared to the overall size of the institution, investors tend to react cautiously because such developments can affect sentiment and confidence around management processes.
HDFC Bank stock performance
Over the last one month, the share price has declined nearly 28%. On a six-month basis, the stock has fallen around 24%.
Looking at a longer time-frame, the share price of the private lender has dropped nearly 21% over the past one year.
So far in 2026, the share price has delivered a negative return of around 23%.
Q4FY26 earnings recap
HDFC Bank recently reported its Q4FY26 earnings. The lender posted a standalone net profit of Rs 19,221.05 crore. This marked a growth of 9.11% compared to Rs 17,616.14 crore reported during the same period last year.
The bank’s Net Interest Income (NII), which reflects the difference between interest earned and interest paid, rose 3.8% year-on-year to Rs 33,281.5 crore.
Net Interest Margin (NIM), a key profitability metric for banks, stood at 3.38% on total assets and 3.53% based on interest-earning assets.
What investors may watch next
Market participants are now likely to closely monitor whether the bank issues any formal clarification or further disclosures regarding the matter in the coming sessions.
“Interviews with bank officials and scrutiny of internal documents reveal that the vigilance inquiry — conducted between March and April this year — concluded that more than 10 top officials bore responsibility. These include: MD & CEO Jagdishan; CFO Srinivasan Vaidyanathan and Chief Marketing Officer Ravi Santhanam,” report published on May 27 2026 stated.
The RBI and HDFC Bank did not respond to detailed questionnaires sent by The Indian Express at the time of publication.
The insights have gone public months after Atanu Chakraborty resigned as HDFC Bank chairman on March 18. He had cited “certain happenings and practices within the bank” that were not in “congruence” with his personal values and ethics, as the reason behind his exit.
Why banking stocks react sharply
Banking stocks are often highly sensitive to developments linked to governance, internal controls, audit findings and compliance-related matters.
Even when the financial value involved is relatively small compared to the overall size of the institution, investors tend to react cautiously because such developments can affect sentiment and confidence around management processes.
HDFC Bank stock performance
Over the last one month, the share price has declined nearly 28%. On a six-month basis, the stock has fallen around 24%.
Looking at a longer time-frame, the share price of the private lender has dropped nearly 21% over the past one year.
So far in 2026, the share price has delivered a negative return of around 23%.
Q4FY26 earnings recap
HDFC Bank recently reported its Q4FY26 earnings. The lender posted a standalone net profit of Rs 19,221.05 crore. This marked a growth of 9.11% compared to Rs 17,616.14 crore reported during the same period last year.
The bank’s Net Interest Income (NII), which reflects the difference between interest earned and interest paid, rose 3.8% year-on-year to Rs 33,281.5 crore.
Net Interest Margin (NIM), a key profitability metric for banks, stood at 3.38% on total assets and 3.53% based on interest-earning assets.
What investors may watch next
Market participants are now likely to closely monitor whether the bank issues any formal clarification or further disclosures regarding the matter in the coming sessions.