HDFC Bank Probes Lending Practices at Vehicle Unit
- Bank veteran Ashok Khanna oversaw key financing operation
- Unit had outstanding loans of $16 billion as of March 31
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HDFC Bank Ltd. has conducted a probe into allegations of improper lending practices and conflicts of interests in its vehicle-financing operation involving the unit’s former head, according to people familiar with the matter.
India’s most valuable lender by market capitalization decided against proceeding with an earlier proposal to extend the employment of Ashok Khanna, an 18-year veteran at the bank, after the investigation was completed, said the people, who asked not to be identified as the information remains confidential. The vehicle financing unit he headed had outstanding loans of more than 1.2 trillion rupees ($16 billion) as of March 31.