An internal probe at HDFC Bank has revealed evidence of information leaks by two senior executives, Bloomberg reported. According to the findings, the executives disclosed confidential business plans and market-sensitive information to outsiders.
The executives oversee key businesses and functions at the bank, according to people familiar with the matter. The internal investigation was launched after some bank leaders raised concerns about possible leaks. It is still not known whether the information has been misused, as the investigation is underway.
A spokesperson for HDFC Bank confirmed the internal review but declined to comment on the findings or the executives involved.
“In line with our policies, an internal review into this matter is currently underway to gather and evaluate all relevant facts. Appropriate action will be taken based on the findings, once the review is complete,” the spokesperson said.
The findings were reported to senior management, including some board members, earlier this year, and the concerned executives have been formally informed of the issue. However, it is still uncertain what action would be taken against them.
The bank has clarified that it is investigating the possible leak of confidential information and will decide on further action after completing its internal review. Moreover, it would not discuss the ongoing review to protect the process and the privacy of those involved.
The lender further reiterated that it remained committed to high standards of ethics and governance and took reports of possible violations seriously.
The development also comes ahead of a leadership change, with Anup Bagchi scheduled to take over as Chief Executive on October 27.
However, the lender has faced other leadership changes this year.
In March, then Chairman Atanu Chakraborty resigned, citing differences between his personal values and certain practices at the bank. An independent legal review commissioned by HDFC Bank subsequently found that his concerns were not substantiated, according to the report.
Apart from that, India’s largest private lender said last week that Deputy Managing Director Kaizad Bharucha had decided to step down and sought cessation of services effective December 31.
In a regulatory filing, the bank said Bharucha had submitted a formal request to cease his duties at the close of business on December 31.
