HDFC Bank slides 3% on report of improper lending in vehicle finance unit

"The result of the investigation followed issues thrown up by an internal audit of the bank's vehicle-dealer lending, as well as allegations of conflicts of interest," the report said

Shares of HDFC Bank slipped 3 per cent to Rs 1,071.2 on the BSE on Monday after a Bloomberg report alleged that the bank was probing allegations of improper lending practices and conflicts of interests in its vehicle-financing operation.

"The result of the investigation isn’t public, but it followed issues thrown up by an internal audit of the bank’s vehicle-dealer lending, as well as allegations of conflicts of interest in the purchase of global positioning systems for vehicles financed by the bank," the report said quoting unnamed sources. 

At the Centre of the enquiry is Ashok Khanna, an 18-year veteran at the