HDFC Bank on Tuesday said that the issue of an alleged conflict of interest in its vehicle finance vertical is not related to the lending aspect of the business and hence it will have no bearing on the loan book.
The bank has a robust policy to deal with complaints while the process and the outcome of dealing with complaints is an internal matter, HDFC Bank told CNBC-TV18.
On Monday, it was reported that HDFC Bank was probing allegations of improper practices in its vehicle finance business. The bank had confirmed that it was looking into them.
HDFC Bank’s vehicle finance business has outstanding loans of over Rs 1.12 lakh crore, where the auto loan book stood at Rs 83,935 crore and its commercial vehicle and construction equipment book at Rs 29,045 crore as of March 31, 2020.
According to a Bloomberg report, Ashok Khanna, the former group head of the bank’s secured vehicle loans, retired from the bank in March 2020. The report 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.
However, the bank told CNBC-TV18 that Ashok Khanna’s extended term of service ended in March. The exit of Munish Mittal, Group Head – IT & CIO, HDFC Bank, was separate and he left for higher studies, the bank added.
Further, it said that the bank can take executive exits in its stride.