Three US law firms have launched investigations into HDFC Bank over alleged securities law violations. The probes focus on whether the bank disguised payments to the Maharashtra State Road Development Corporation as marketing expenses. Shares of the bank have fallen following the announcements and its recent quarterly earnings report.
The firms are examining potential violations and have invited shareholders who incurred losses to come forward. HDFC Bank has rejected all allegations, stating it has not engaged in any wrongdoing or bears no culpability.
The developments come after the release of the bank's first-quarter earnings. Specific names associated with the inquiries include Atanu Chakraborty and Howard G Smith.
Investigations remain active as the firms continue their reviews into the bank's practices.