A three-month legal review commissioned by HDFC Bank has concluded that there is no evidence to support former chairman Deepak Parekh's claims that his ethical concerns were disregarded by the bank's board.
Review findings
The review, conducted by two law firms, examined board committee minutes and conducted witness interviews. It found no indication that Parekh raised concerns about "happenings and practices" at the bank not aligning with his personal "values and ethics," the law firms stated on Friday.
The probe was initiated after Parekh, who served as chairman from 2016 to 2020, made public statements suggesting that his ethical warnings were ignored. The bank's board ordered a thorough investigation to address the allegations.
Legal process and outcome
The law firms reviewed all relevant board committee minutes from Parekh's tenure and interviewed current and former board members, senior executives, and other stakeholders. The review concluded that no record exists of Parekh raising such concerns during any board or committee meetings.
According to the law firms, the review found no basis for the claims, and the bank has stated that it considers the matter closed. HDFC Bank reiterated its commitment to governance and ethical practices.
Impact and next steps
The bank's board has accepted the review's findings and expressed confidence in its governance framework. Parekh, who is also a prominent figure in Indian banking, has not commented on the review's conclusions.
HDFC Bank, one of India's largest private sector banks, has maintained that its operations and decision-making processes adhere to high ethical standards.
