The Securities and Exchange Board of India (Sebi) has issued an administrative warning to HDFC Bank for non-compliance at its investment banking operations.

This was disclosed by the country’s largest private sector lender in a regulatory filing to the stock exchanges.

The share on Thursday settled 0.25 per cent lower at ₹1,858.95 on the BSE. Its decline came amid a weakness in the markets which saw the benchmark Sensex falling 0.29 per cent or 236.18 points at 81289.96.

``Sebi has issued an administrative warning letter to the bank, in relation to observations made during the course of its periodic inspection of investment banking activities undertaken by the bank, thereby alleging non compliances with certain provisions of the Sebi (Merchant Bankers) Regulations, 1992, Sebi (Issue of Capital and Disclosure Requirements) Regulations, 2018 and Sebi (Prohibition of Insider Trading) Regulations, 2015,’’ HDFC Bank said in the communication to the stock exchanges.

It added that it will take necessary steps to address the concerns and directives cited by the market regulator.

The administrative warning letter dated December 9, was received by the bank on Wednesday. HDFC Bank added that the development will not make any impact on its financials, operations or other activities ``quantifiable in monetary terms to the extent possible’’.

While banking stocks have shown a lacklustre performance over the last three months on account of valuation concerns amid elevated interest rates, the HDFC Bank stock has risen around 12 per cent.

The bank had topped street estimates for the quarter ended September 30, 2024, when it reported a 5.28 per cent rise in net profits. It clocked a net profit of ₹16,820.97 crore against₹15,976.11 crore a year ago.