HDFC Bank has disciplined three senior executives, including its chief executive, following an internal review that identified lapses in deposit rate setting for a state agency.
The board concluded that while the actions constituted 'business overreach,' there was no evidence of improper motive or corruption among the employees involved.
The decision marks a significant development in the ongoing governance dispute at India's largest private lender.
By attributing the issue to operational error rather than intent, the bank aims to contain reputational damage and stabilize investor sentiment.
The penalties serve as a corrective measure to address the specific pricing irregularities without escalating the matter into a broader legal or criminal investigation.
This follows an external legal review announced earlier, which found no evidence in board records or communications to support the concerns raised by former chairman Atanu Chakraborty in his resignation letter.