Lucknow, Aug. 6 -- An Uttar Pradesh manufacturing company has initiated legal proceedings against a leading private sector bank, highlighting growing concerns about procedural irregularities in the banking sector that disproportionately affect small and medium enterprises.

Chakradhar Chemicals Private Limited, a Muzaffarnagar-based manufacturer and exporter of zinc sulphate, has filed a criminal defamation complaint against HDFC Bank following what the company describes as an unjustified denial of a top-up home loan application.

The company, which has been operational since 1990 and employs approximately 100 people, maintains it has consistently met all financial obligations and holds a strong reputation in both domestic and internation...