An internal investigation by HDFC Bank has found evidence that two senior executives disclosed confidential business strategies and potentially market-sensitive information to outsiders, adding to the governance challenges confronting India’s largest private sector lender by market value.According to the people familiar with the matter, as cited by Bloomberg, the executives oversee key businesses and functions at the bank. The investigation began after some senior leaders raised concerns about possible information leaks. The bank is continuing to examine whether the information disclosed was misused.The findings were communicated with the senior management, including some board members, earlier this year, said the report. Both executives have since been formally informed of the findings. It remains unclear what disciplinary action, if any, will follow.An HDFC Bank spokesperson said the bank is committed to upholding the highest standards of ethics and governance as outlined in its Code of Conduct. “We take any report of potential violations seriously. In line with our policies, an internal review into this matter is currently underway to gather and evaluate all relevant facts,” he said.“To protect the integrity of the process and the privacy of all parties involved, we do not comment on active internal reviews. Appropriate action will be taken based on the findings, once the review is complete,” the bank said.Must Read | HDFC Bank Dy MD Kaizad Bharucha quits; was in race for MD postLeadership transitionThe latest development comes at a sensitive time for the bank, which is preparing for a leadership transition. Anup Bagchi, a veteran of the ICICI Group, is scheduled to take over as the managing director and chief executive officer on October 27. The incumbent, Sashidhar Jagdishan, is stepping down after six years. Deputy Managing Director Kaizad Bharucha has also sought to leave by December-end.Story continues below this adThe fresh probe also brings renewed attention to questions surrounding internal controls and corporate governance at the lender following the abrupt resignation of its part-time chairman, Atanu Chakraborty, in March.Chakraborty had said that certain happenings and practices he had observed over two years were “not in congruence with my personal values and ethics”. He did not elaborate on the reasons for his departure. An independent legal review commissioned by the bank subsequently concluded that his concerns and their implications were not substantiated by the records and witness interviews, the bank said.Further, an investigation by The Indian Express into the bank’s dealings with the Maharashtra State Road Development Corporation (MSRDC) had raised separate questions about the lender’s internal processes.HDFC’s dealings with MSRDCThe investigation reported that payments amounting to about Rs 45 crore, described as differential interest on MSRDC deposits for 2023-24 and 2024-25, were routed through the bank’s marketing department and presented as contributions to a road safety awareness campaign through vendors, instead of being credited directly as interest.Story continues below this adThe report said the bank’s internal vigilance investigation had examined the arrangement and raised concerns about possible violations of banking rules and the lender’s own policies. The bank has publicly denied assumptions of wrongdoing based on selective material.In July, the bank’s board decided to issue warning letters and impose a monetary penalty of Rs 1 lakh each on Jagdishan, Chief Financial Officer Srinivasan Vaidyanathan and Group Head of Retail Assets Arvind Vohra. The board characterised the conduct as business overreach rather than mala fide action, personal enrichment or improper motive.The latest allegations concerning confidential information are distinct from the MSRDC matter, and there is no established evidence linking the two investigations. Together, however, the episodes place renewed focus on the effectiveness of the bank’s internal controls, the handling of sensitive information and the accountability of senior management.