HDFC Bank has been asked to provide details of an internal investigation into allegations of improper lending practices in its vehicle-financing operation, said people familiar with the matter.
The information will maintain anonymity as it isn’t public, people added. The Reserve Bank Of India is further seeking details about steps taken by HDFC Bank to rectify any identified issues during the investigation.
On Saturday, Puri said that the inquiry was triggered by a whistle-blower and uncovered “personal misconduct” by some of the bank’s employees. Following the bank’s latest earnings report, he added that “Based on internal inquiry findings, appropriate action was taken against a set of employees in the auto loan business segment for their act of personal misconduct.”
As of June 20, the vehicle financing unit had outstanding loans at almost Rs 1.2 lakh crore ($16 billion). With Puri to step down after 26 years at the helm, HDFC Bank is bracing for a leadership change. He will retire when he turns 70 in October under RBI rules that restrict the age of top bank executives.

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