New York based, Rosen Law Firm plans to slap a class action suit against HDFC Bank, following allegations that it may have “issued materially misleading business information to the investing public”. On its website, the company has urged shareholders to join the class action.
The law firm has alleged impropriety in the Bank’s vehicle financing unit and delay in reporting customer data to Indian arm of credit bureau, Experian PLc. It also said that the Bank had missed analyst estimates in Q1FY21 and asset quality had deteriorated though it is amusing to know that these two could be cited as reasons for a class action!
HDFC Bank stated that it was unaware of any such lawsuit and on the face of it, held no credence.
Our Editor, Mr.SP Tulsian, on this matter said, “ See no force or substance or anything negative in the stock.”
k into the greenThe stock is not too perturbed by this news as it is seen holding on to the green. From its close of Rs.1033.55 yesterday, the stock did open in the red at Rs.1028 but soon jumped back, rising to Rs. 1038.