HDFC Bank gets warning letter from SEBI over alleged regulatory non-compliance 

HDFC Bank informed the stock exchanges that it has received an administrative warning letter from the Securities and Exchange Board of India (SEBI). The regulator issued an administrative warning letter to HDFC Bank regarding alleged non-compliance with multiple regulations.  

The warning pertains to non-compliance with certain provisions of SEBI’s regulations related to merchant bankers, issue of capital and disclosure requirements, and prohibition of insider trading. 

The lender said that SEBI claimed non-compliance with the following regulations: 

SEBI (Merchant Bankers) Regulations, 1992, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and Sebi (Prohibition of Insider Trading) Regulations, 2015. 

The warning was issued on December 9 and received on December 11 by the bank, the disclosure said. 

HDFC Bank said that it will take necessary steps to address the concerns and directives mentioned in the letter. 

The bank confirmed that the warning letter does not have any quantifiable impact on its financial or operational activities. 

This notification follows SEBI’s standard procedure for regulatory compliance and is in line with the bank’s ongoing efforts to address regulatory concerns. 

HDFC Bank’s market capitalisation crossed the Rs 14 lakh crore mark for the first time in intra-day trades as the stock price of the largest private sector lender hit a record high on BSE past month. The positive momentum around the stock was seen as MSCI November rebalancing came into effect early this week. 

HDFC Bank, reported a consolidated profit after tax (PAT) of Rs 17,830 crore. The consolidated PAT adjusted for trading and mark to market gains and tax credits in the prior year, grew by 17.4 percent over the quarter ended September 30, 2023. The consolidated PAT for the half year ended September 30, 2024 stood at Rs 34,300 crore. 

The bank’s consolidated revenue grew by 14.7 percent YoY to Rs 76,040 crore for the quarter ended September 30, 2024, from Rs 66,320 crore billion for the quarter ended September 30, 2023.   

Its earnings per share for the quarter ended September 30, 2024 stood at Rs 23.4 and book value per share as of September 30, 2024, was at Rs 631.4.  

The bank’s net revenue grew by 9.2% to Rs 41,600 crore for the quarter ended September 30, 2024 from Rs 38,090 crore for the quarter ended September 30, 2023.