HDFC Bank’s board has imposed Rs 1 lakh fines and issued warning letters to senior executives after an internal review of the bank’s deposit arrangements with Maharashtra State Road Development Corporation in 2017 and 2021 found instances of “business overreach”. The bank said it found no mala fide intent, personal enrichment or improper motive, but acknowledged a potential divergence from RBI directions and said the matter will be formally communicated to the RBI. The action comes three months before MD & CEO Sashidhar Jagdishan’s term ends on October 26 and marks his second major controversy as CEO. HDFC Bank shares closed down Rs 3 at Rs 739 even as the sensex rose 776 points.

Foreign portfolio investors (FPIs) were net buyers of $2.59 billion in the first 10 trading days of July, reversing the $24 billion of net outflows seen from March to May. Equity inflows totaled $1.6 billion, accounting for more than 61% of the overall inflow, with financials drawing the bulk of allocations. Analysts cited a steady rupee, heightened volatility in Korea and Taiwan, and improving Indian economic fundamentals as key drivers. The renewed foreign buying has provided a meaningful liquidity boost to Indian equities, particularly domestic indices and financial assets.