February 8, 2021 - An amended complaint was filed.
September 3, 2020 - An investor in shares of HDFC Bank Limited (NYSE: HDB) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by HDFC Bank Limited in connection with certain allegedly false and misleading statements made between July 31, 2019, and July 10, 2020.
India based HDFC Bank Limited provides various banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. HDFC Bank Limited reported that its Total Revenue rose from 667.62 million INR for the 12 months period that ended on March 31, 2019, rose to 791.74 million INR for the 12 months period that ended on March 31, 2019, and that its Net Income over those respective time periods increased from 220.1 million INR to 260.26 million INR.
On July 13, 2020, it was reported that HDFC Bank Limited 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 July 19, 2020, HDFC Bank Limited 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, it was 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. Shares of HDFC Bank Limited (NYSE: HDB) closed on August 20, 2020, at $47.72 per share.
According to the complaint the plaintiff alleges on behalf of purchasers of HDFC Bank Limited (NYSE: HDB) common shares between July 31, 2019, and July 10, 2020, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between July 31, 2019, and July 10, 2020, the defendants made false and/or misleading statements and/or failed to disclose that HDFC Bank had inadequate disclosure controls and procedures and internal control over financial reporting, that as a result, the Bank maintained improper lending practices in its vehicle-financing operations, that accordingly, earnings generated from the Bank's vehicle-financing operations were unsustainable, that all the foregoing, once revealed, was foreseeably likely to have a material negative impact on the Bank's financial condition and reputation, and that as a result, the Bank's public statements were materially false and misleading at all relevant times.