The board penalised the top executives after the bank’s arrangement with the Maharashtra State Road Development Corporation (MSRDC) was reviewed internally. The board also must ensure that the executives focus more keenly on the efforts to make the operations more efficient. Governance concerns surfaced, hitting the bank stock badly. The need of the hour is systemic reform, for episodic actions like monetary penalties and formal warnings, though necessary, will not be adequate. Meaningful systemic reform will ultimately determine the future of HDFC.