6 days ago
HDFC Bank Shares Hit 52-Week Low After US Lawsuit
HDFC Bank’s shares fell after an investor filed a lawsuit in the United States.
The shares reached their lowest price in a year at Rs 710.
The lawsuit names the bank, its chief executive Sashidhar Jagdishan, and former chief financial officer Srinivasan Vaidyanathan.
It questions about Rs 45 crore in payments made to the Maharashtra State Road Development Corporation.
The payments were reportedly recorded as marketing expenses.
The lawsuit alleges that investors were not given enough information about the payments.
HDFC Bank rejects the allegations and says it will fight the case.
The bank also says shareholder lawsuits like this are common after a company’s stock falls.
Investors are watching the legal case and the bank’s declining share price.
HDFC Bank shares fell more than 2% and reached a 52-week low of Rs 710.
The decline pushed the bank’s market capitalisation below Rs 11 trillion.
Investor Jwalant Natvarlal Soneji filed a US securities fraud class action against HDFC Bank and two senior executives.
The lawsuit concerns around Rs 45 crore paid to the Maharashtra State Road Development Corporation and classified as marketing expenses.
HDFC Bank called the lawsuit meritless, said such cases are common after share-price declines, and plans to defend itself.
- Who
- HDFC Bank, its Managing Director and Chief Executive Officer Sashidhar Jagdishan, former Chief Financial Officer Srinivasan Vaidyanathan, and investor Jwalant Natvarlal Soneji.
- What
- A US securities fraud class action lawsuit was filed against HDFC Bank and the two executives; the bank’s shares subsequently hit a 52-week low.
- Where
- The lawsuit was filed in the United States, and the payments at issue involved the Maharashtra State Road Development Corporation.
- When
- The lawsuit covers securities purchases from July 17, 2023, to May 26, 2026; the shares fell during the reported trading session.
- Why
- The allegations concern approximately Rs 45 crore in payments allegedly classified as marketing expenses and linked to compensation for interest rates offered to certain depositors.
Lawsuit Allegations
HDFC Bank’s Response
Disclosure of payments
Lawsuit Allegations
The lawsuit alleges that investors were not adequately informed about approximately Rs 45 crore in payments made to the Maharashtra State Road Development Corporation.
HDFC Bank’s Response
HDFC Bank rejected the claims and said it believes the lawsuit is without merit.
Classification of expenses
Lawsuit Allegations
The allegations question the classification of the payments as marketing expenses and link them to compensation for interest rates offered to certain depositors.
HDFC Bank’s Response
The bank did not accept the allegations and said it intends to vigorously defend itself.
Significance of the lawsuit
Lawsuit Allegations
The legal filing has added pressure to HDFC Bank’s shares, which reached a fresh 52-week low.
HDFC Bank’s Response
The bank said shareholder lawsuits of this type are incredibly common in the United States after a company’s stock declines.
Key facts
- 52-week low
- Rs 710
- Share-price move
- Down more than 2% during the reported session
- Market capitalisation
- Fell below Rs 11 trillion
- Payments under scrutiny
- Around Rs 45 crore paid to the Maharashtra State Road Development Corporation
- Lawsuit period
- Investors who purchased securities between July 17, 2023, and May 26, 2026
- Six-month performance
- Shares declined nearly 19%
- One-year performance
- Shares declined around 25%; they were down about 28% in 2026 at the time of reporting
Quotes
HDFC Bank spokesperson
Spokesperson for HDFC Bank commenting on the US shareholder lawsuit
“In the United States, these types of shareholder lawsuits are incredibly common after a company experiences a stock drop, and many companies listed in the U.S. routinely defend these lawsuits each year. The Bank believes the lawsuit is without merit and intends to vigorously defend itself.”
financialexpress.com
Sources
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