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HDFC Bank could have bundled GPS with loans

Car mortgage clients of HDFC Bank Ltd had been compelled to buy a car monitoring gadget for about 4 years ended December 2019 in a doable breach of pointers prohibiting banks from non-financial companies, two folks conscious of the matter stated. The financial institution on Saturday stated it has taken motion towards staff within the car finance unit after an investigation, with out giving particulars.

HDFC Bank executives pushed auto mortgage clients to purchase GPS gadgets costing ₹18,000-19,500 from 2015 to December 2019, in keeping with the 2 folks cited above, who spoke on situation of anonymity. The price of the gadget was added to the mortgage quantity.

“These devices were bundled along with the loan, where reluctant applicants were told that unless they agreed to take this product, their loan would not be sanctioned,” the primary of the 2 folks stated, including senior executives on the auto mortgage unit had been beneath excessive strain to fulfill gross sales targets for these gadgets.

The gadget in query was bought by Trackpoint GPS, a Mumbai-based agency. Data from the registrar of firms (RoC) exhibits the corporate’s income jumped 175 occasions between FY15 and FY19. It posted a lack of ₹3.87 crore in FY19 on the again of ₹78.31 crore revenues, with bills overshooting revenues. Trackpoint’s complete bills stood at ₹80.25 crore in FY19, together with parts resembling fee and brokerage of ₹3.49 crore, and authorized {and professional} charges of ₹2.84 crore. Directors of Trackpoint embody Amar V. Amin, Carey Bryan Fan and Vinod Ranchhodbhai Amin. California-based Matchpoint GPS Inc. is an investor within the firm.

A former worker of Trackpoint advised Mint on situation of anonymity that the corporate’s gross sales executives had been advised to fulfill HDFC Bank officers steadily, and arrive at gross sales targets for these gadgets. “It was like a tie-up where the bank provided loan customers to us and we provided the devices,” stated the particular person cited above.

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