HDFC Bank has been late in providing details of its loans, including the repayment status of its millions of retail borrowers
HDFC Bank branch in Banjarahills, Hyderabad, India. (Credit: Adbh266/commons.wikimedia.org.)
Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of HDFC Bank Limited (NYSE: HDB) resulting from allegations that HDFC Bank may have issued materially misleading business information to the investing public.
On July 13, 2020, The Economic Times reported that HDFC Bank had “conducted a probe into allegations of improper lending practices and conflicts of interests in its vehicle-financing operations involving the unit’s former head.” On this news, HDFC Bank’s American depositary receipt price fell $1.37 per share, or 2.83%, to close at $47.02 per share on July 13, 2020.
On July 19, 2020, HDFC Bank reported its financial results for the first quarter of the Bank’s 2021 fiscal year, missing analyst estimates with respect to net profit and reporting a deterioration in its asset quality.
Then, on August 6, 2020, the publication The Print reported that in July 2020, Experian Plc’s Indian unit had informed the Reserve Bank of India that “HDFC Bank has been late in providing details of its loans, including the repayment status of its millions of retail borrowers” and that “[s]uch tardiness has been an issue for about two years.”
Source: Company Press Release