HDFC Bank will reimburse the commission for the GPS navigator to the clients of car loans

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HDFC Bank

Representative image & nbsp

New Delhi: HDFC Bank, the country’s largest private sector lender, said Thursday that it will reimburse the GPS device fee to all car loan borrowers who used the device as part of their car loans taken between fiscal 2014-20.

“The refund will be credited to the client’s bank account registered with the bank,” HDFC Bank said in a statement published Thursday in the newspaper.

HDFC has sparked controversy after it was said that the bank was incorrectly selling GPS devices to its car loan clients.

It is worth mentioning here that on May 28, the Reserve Bank of India imposed a 10 crore fine on a private sector lender after it found irregularities in the bank’s auto loan portfolio based on a whistleblower complaint.

Last year, HDFC Bank conducted an internal investigation into allegations that its car loan clients were given GPS devices without their knowledge. The charges also surfaced on social media.

Aditya Puri, former Managing Director and Chief Executive Officer of HDFC Bank, confirmed at the AGM on July 18 last year that the bank had investigated vehicle loans and that appropriate action had been taken against employees involved in the misconduct. The incident also resulted in a number of executives leaving the bank.

The GPS device is reported to cost around Rs 18,000. According to media reports, the bank could incur losses of Rs 40-45 crores due to this reimbursement.

As of 2:40 pm, HDFC Bank shares were down 0.72% to Rs 1,473.90 apiece, compared with a 1.52% drop in the industry benchmark bank Nifty.

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