US law firm Glancy Prongay & Rotter LLP is investigating HDFC Bank for potential federal securities law violations. The probe examines whether India’s largest private lender issued misleading disclosures or engaged in unlawful business practices.
Reports allege the bank disguised ₹45 crore as marketing expenses to facilitate higher interest payments to the Maharashtra State Road Development Corporation (MSRDC). This practice potentially violates Reserve Bank of India regulations.
HDFC Bank’s American Depositary Receipts (ADRs) fell approximately 5.1% on the New York Stock Exchange following the news. The bank denies all allegations and maintains its operations comply with regulatory requirements.