(Aditya Shaw , Intern Journalist): HDFC Bank, the country’s largest private sector bank, has exposed fraudulent lending against cars. In this case, the bank has taken action, leaving 6 senior and middle level employees. This has come at a time when HDFC Bank MD Aditya Puri is retiring in a few months. Only last week he said in the AGM that he was leaving a bank which is a world class bank and which he prepared in 25 years.
Code of conduct not followed
This is the first time in recent times when such disturbances have occurred in the bank. According to the information, the bank conducted an internal investigation after the complaint in this case. The investigation found that these employees did not follow the Code of Conduct and Governance Standards. It was seen that these people were involved in corruption. By exposing the employees to the bank, the bank management has given a message that it will not accept such cases.
Ashok Khanna retired in March
Last week, according to news, the bank had refused to extend the service to Ashok Khanna, the former head of the bank’s vehicle financing business. Because they were under investigation in this case. Ashok Khanna retired on 31 March 2020. However, Khanna denied such allegations. He said that he had not received any extension offer.
Cheating used to happen in the name of GPS device
Explain that this kind of work was going on in the bank’s auto loan department for a long time. These people used to force customers to take GPS devices while taking a car loan. The bank had tied up with Track Point GPS for the sale of this GPS. It was found that some customers were not familiar with this product. But when he checked the loan document, he came to know about it.
The bank used to give loans for 50 thousand vehicles every month.
However, the product was approved by the bank. The bank used to sell four to five thousand of such GPS devices every month. A device used to cost 18 to 19 thousand rupees. HDFC Bank is leading in the vehicle finance segment and used to give loans for 50,000 cars every month. Its annual auto business is worth 40 thousand crores. According to the results released on Saturday, the total vehicle loan portfolio of the bank was 81 thousand crores till June 2020.
At the same AGM, Aditya Puri said that we have received an auto loan complaint and we are investigating the matter. Two days later, the bank decided in this matter and fired 6 people.
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