HDFC Bank Faces U.S. Securities Class-Action Lawsuit, Stock Crashes to 52-Week Low

HDFC Bank faces a securities class-action lawsuit in the United States, filed by investor Jwalant Natwarlal Soneji in the U.S. District Court for the Southern District of New York. The complaint names the lender, CEO Shashidhar Jagdishan, and CFO Srinivasan Vaidyanathan as defendants, covering securities purchasers between July 17, 2023, and May 26, 2026. The lawsuit alleges the bank mischaracterized approximately 45 crore rupees in payments made to the Maharashtra State Road Development Corporation as marketing expenses, which allegedly served to compensate certain depositors with higher interest rates. Following the legal filing, HDFC Bank shares dropped nearly 2.5 percent on the BSE to a 52-week low of 710 rupees, erasing roughly 25,000 crore rupees in market capitalization during a single trading session. The bank has dismissed the litigation as meritless and confirmed plans to defend itself vigorously against the allegations in court.