HDFC Bank Shares Fall on US Class-Action Lawsuit
HDFC Bank shares came under pressure on Thursday after a securities class-action lawsuit was filed in the United States against the lender and two senior executives over alleged misleading disclosures linked to payments made to the Maharashtra State Road Development Corporation (MSRDC).
HDFC Bank Faces US Securities Class Action
The lawsuit was filed in the US District Court for the Southern District of New York by investor Jwalant Natvarlal Soneji.
It names HDFC Bank, Chief Executive Officer Sashidhar Jagdishan and Chief Financial Officer Srinivasan Vaidyanathan as defendants. The proposed class covers investors who acquired HDFC Bank American Depositary Shares between July 17, 2023 and May 26, 2026.
The allegations have not been proven in court.
Lawsuit Focuses on ₹45 Crore MSRDC Payments
The complaint centres on allegations that HDFC Bank routed around ₹45 crore to MSRDC between 2023 and 2025 and classified the payments as marketing expenditure linked to a road-safety campaign.
Plaintiffs allege the payments effectively represented additional interest intended to raise MSRDC’s return to about 6.01%, compared with the standard 3.5% savings rate cited in the complaint.
The lawsuit alleges investors were not adequately informed about the arrangement and that statements concerning the bank’s operations and internal controls were misleading.
HDFC Bank Rejects Lawsuit as Meritless
HDFC Bank has rejected the claims and said it intends to vigorously defend itself. The lender said shareholder lawsuits following declines in a company’s stock price are common in the United States.
The bank had previously examined the MSRDC matter internally and described the conduct as “business overreach”, taking disciplinary action against senior executives.
HDFC Bank shares fell during Thursday’s trading session as investors reacted to the US litigation.
