HDFC Bank Faces Class Action Lawsuit in the US

HDFC Bank, along with CEO Sashidhar Jagdishan and CFO Srinivasan Vaidyanathan, is facing a securities class action lawsuit in the U.S. District Court for the Southern District of New York. The action covers investors who purchased HDFC Bank American Depositary Shares between July 17, 2023 and May 26, 2026. The complaint alleges that the bank offered Maharashtra State Road Development Corporation (MSRDC) an interest rate of 6.01% to attract large deposits and that around Rs.45 crore in differential payments were allegedly routed through marketing expenses.

HDFC Bank has rejected the allegations, saying such shareholder lawsuits are common in the US after a stock-price decline. The bank said it believes the lawsuit is without merit and intends to defend itself strongly. The development comes shortly after HDFC Bank raised $1.75 billion through a dollar bond issue from its GIFT City branch. The allegations in the lawsuit remain claims by the plaintiff and have not been established as findings of the court.