Economy
HDFC Bank Faces US Class Action Lawsuit Over Securities Violations
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THE BRIEF
1
HDFC Bank faces a class-action lawsuit in the US District Court for the Southern District of New York, filed on 13 August by investor Jwalant Natvarlal Soneji.
2
The complaint alleges the bank disguised ₹45 crore in payments to the Maharashtra State Road Development Corporation as marketing expenses to provide an inflated 6.01% interest rate.
3
HDFC's American depositary shares fell 4.1% on 27 May following reports of the internal vigilance probe, and the bank has stated it intends to vigorously defend the lawsuit.