finance | IST

HDFC Bank: Alleged improper lending in vehicle finance division under probe

HDFC Bank, the country's number one private sector lender, is probing allegations of improper lending practices in its vehicle finance business. The story was first report by Bloomberg this morning.
While the nature of these allegations could not be ascertained, the bank confirmed that it is looking into them with regards to its vehicle finance vertical.
In a statement to CNBC-TV18 on these allegations, HDFC Bank said, “The bank has a well-established process of investigating every complaint it receives, and takes action as appropriate. In the said instance as well, the bank has followed the due process.”
A spokesperson for HDFC Bank told CNBC-TV18 that Arvind Kapil, Group Head of Retail Assets, has taken charge of the vehicle finance business after the former head left the bank in March.
Ashok Khanna, the former group head of the bank’s secured vehicle loans, retired from the bank in March 2020. Bloomberg in its story suggested that Khanna’s exit was linked to the unfair lending practices alleged in the vehicle lending business. CNBC-TV18 could not corroborate this information independently.
HDFC Bank’s vehicle finance business has outstanding loans of over Rs 1.12 lakh crores, where the auto loan book stood at Rs 83,935 crores and its commercial vehicle and construction equipment book at Rs 29,045 crores as of March 31, 2020.
next story

Market Movers

Currency

CompanyPriceChng%Chng