The Water Resources Department of the government of Punjab has refused the employees to open an account in HDFC. Not only this, but people who already have an account in HDFC have also been asked to close it.

A office memo issued states, “It has been brought to the notice by certain Executive Engineers (Drainage-cum- District Mining Officers that the HDFC Bank had issued certain bank guarantees to the mining contractors. These mining contractors have defaulted in making payment to the state government and when the Executive Engineers (Drainage-cum- District Mining Officers approached the bank to encash the bank guarantee, HDFC Bank for the one reason or the other is not encashing these bank guarantees.”

Accordingly, it has been decided that no bank accounts will be kept in the HDFC Bank. In addition to it, in case some of the employees had their salary account opened in the HDFC Bank they may be persuaded and requested in the larger interest of the department to close their accounts with the HDFC Bank and they may be requested to open their salary accounts in any other bank of their choice”.

In the letter issued by the Principal Secretary to HDFC Bank states- ‘it has been said that HDFC bank had issued bank guarantees to some mining contractors. These contractors have defaulted in making payments to the state government. When the officials associated with the department came to encash the bank guarantee, the bank refused to do so without reason. On the basis of this, it has been decided that now no account will be kept in HDFC Bank.

HDFC Bank has said that it honours all its payment obligations as per the terms of the bank guarantees issued by the bank