HDFC Bank on Thursday clarified that an internal audit observation cited in recent media reports, which triggered a decline in its share price, does not have any material impact on its financial statements and does not warrant a disclosure under market regulations.
“In this connection, we wish to state that in line with the highest corporate governance standards of the Bank, the Internal Audit function conducts reviews, identifies and presents its observations from time to time,” said HDFC Bank in its exchange filing.
Further adding, “As such, the observations of Internal Audit function are comprehensively addressed by the Bank and that applies to the matter in question.”
The clarification followed queries from the National Stock Exchange of India Limited and BSE Limited seeking confirmation on news reports that led HDFC Bank shares sliding about 2.5% in intraday trade on May 27.
“The Bank continues to maintain sound financial and risk management practices, with robust systems of internal control and oversight. We remain committed to the highest standards of corporate governance and regulatory compliance,” the filing said, reiterating the bank’s commitment to corporate governance and regulatory compliance.
