Mumbai, July 27 -- HDFC Bank on Monday said an internal review into its arrangement with the Maharashtra State Road Development Corporation (MSRDC) for garnering deposits found that the conduct of employees involved amounted to business overreach and not any mala fide action, personal enrichment or improper motive.

Based on the findings and recommendations of a Special Disciplinary Committee of Independent Directors, the bank's Board, at its meeting held on July 23, decided to issue warning letters and impose a monetary penalty of Rs 1 lakh each on three senior employees -- Managing Director & CEO, Chief Financial Officer and Group Head-Retail Assets. The remaining employees involved will receive warning letters.

"The Board... concluded...