HDFC Auto Loan: HDFC Bank on Monday said it has launched a probe into its auto lending practices following allegations against the conduct of a long-time executive who retired on March 31 this year.
“We would like to state that the executive concerned who was on an extension of service retired on March 31, 2020 in the normal course of his employment. The bank has a well established process of investigating every complaint that it receives and takes actions as appropriate,” an HDFC Bank spokesperson said.
The auto loan department executive could not be contacted for comments.
The allegations pertain largely to the professional conduct which raises issues about possible conflicts of interest, sources said, stressing the quality of the bank’s auto loan book is strong.
The spokesperson said the “due process” was followed in this instance and asserted that the bank has followed “highest standards of governance and propriety at all times”.
The auto loan book had stood at Rs 83,935 crore as of March 31, 2020, constituting less than a fifth of the overall retail book. The auto loans had grown by only 4.04 per cent in FY20 as against the 14.61 per cent growth in the overall retail advances. It can be noted that auto sales were also in the slow lane for much of the year.
Meanwhile, Munish Mittal, the bank’s chief information officer has decided to move on to pursue higher studies at an overseas university, sources said.
Mittal had joined the lender way back in 1996 and had been serving as the CIO since 2015, they said.
HDFC Bank shares closed 2.26 per cent down at Rs 1,080.40 apiece on BSE on Monday against gains of 0.27 per cent on the benchmark index Sensex.