HDFC Bank (BOM:500180, NSE:HDFCBANK) concluded an internal review of its deposit arrangement with the Maharashtra State Road Development Corporation, according to a Monday stock exchange filing.

The board, based on the findings of a special disciplinary committee of independent directors, concluded that the employees involved had committed business overreach rather than acted with mala fide intent, personal enrichment or improper motive.

The bank issued warning letters and imposed a 100,000-rupee monetary penalty on Managing Director and Chief Executive Officer, the Chief Financial Officer and the Group Head of Retail Assets.

The remaining employees received warning letters.

The review relates to the bank's deposit arrangement with MSRDC in 2017 and 2021, following a media report alleging HDFC Bank routed 450 million rupees in payments to the state agency as marketing expenses to effectively enhance returns on its deposits.