In a press release on Sunday, Rosen Law, a US-based Law Firm announced an investigation of potential securities claims and has prepared a securities lawsuit on the behalf of HDFC Bank shareholders that HDFC Bank Ltd. may have issued misleading business information to investors.
Earlier, HDFC Bank is alleged into practising improper lending in its vehicle financing arm which involves Ashok Khanna, the business head. The bank was into the allegation that it is forcing its car loan customers to purchase a tracking device for their cars.
Rosen Law represents worldwide investors by focusing its practices in securities class actions and shareholder derivative litigation. The Firm had prepared a lawsuit against Infosys last year, for using unethical ways to boost short-term revenue and profits.
HDFC Bank has reported its first-quarter financial results of the fiscal year 2021, with missing analyst estimates in terms of net profit and a deterioration in its asset quality, according to the law firm. On 6 August, Credit Information Bureau Experian Plc’s Indian Unit informed the Reserve Bank of India (RBI) that the bank has been late in providing the details of loans and the repayment status of its retail borrowers. The law firm sought information from the shareholders of HDFC Bank who want to recover their losses in the securities of the bank.