6 days ago
HDFC Bank Shares Fall Over 2% After US Securities Lawsuit
HDFC Bank shares became cheaper during trading on Thursday, August 27.
They fell 2.3% and reached Rs 710.
This was the stock's lowest price in 52 weeks.
Investors were concerned about a lawsuit filed in the United States.
The lawsuit says the bank may have broken securities laws and caused losses for investors.
It names HDFC Bank and two senior executives.
The case relates to a report about alleged payments made to a road-development corporation.
HDFC Bank shares have fallen about 28% during 2026.
HDFC Bank shares fell 2.3% on Thursday, August 27, reaching a 52-week low of Rs 710 on the National Stock Exchange of India.
The decline followed a US class-action securities lawsuit alleging violations of foreign securities laws and investor losses.
The lawsuit names HDFC Bank, Managing Director and Chief Executive Officer Sashidhar Jagdishan, and Chief Financial Officer Srinivasan Vaidyanathan.
The legal action concerns a May 27, 2026 report alleging ₹45 crore in payments to Maharashtra State Road Development Corporation were disguised as marketing and sponsorship expenses.
HDFC Bank's market capitalisation fell below Rs 11 trillion, while its shares were down about 28% in 2026.
- Who
- HDFC Bank, Sashidhar Jagdishan, and Srinivasan Vaidyanathan are named in the lawsuit; Jwalant Natvarlal Soneji filed it.
- What
- HDFC Bank shares fell 2.3% after reports of a US class-action securities lawsuit.
- Where
- The shares traded on the National Stock Exchange of India, while the lawsuit was filed in the United States District Court for the Southern District of New York.
- When
- The share decline occurred on Thursday, August 27; the related report appeared on May 27, 2026.
- Why
- Investors reacted to allegations involving misleading disclosures, governance-related lapses, foreign securities-law violations, and alleged investor losses.
Key facts
- Share decline
- 2.3% during Thursday's session
- Intraday and 52-week low
- Rs 710
- Previous close
- Rs 727.20
- 2026 share performance
- Down about 28%
- Market capitalisation
- Fell below Rs 11 trillion
- Lawsuit
- US class-action lawsuit alleging violations of foreign securities laws
- Related allegation
- A May 27 report alleged ₹45 crore in payments were disguised through marketing budgets and sponsorships
Quotes
Nagaraj Shetti
Senior Technical Research Analyst at HDFC Securities
“The underlying trend of Nifty is choppy with weak bias. Any failure to sustain above the crucial 24000 mark could trigger more weakness in the short term. The crucial overhead resistance is placed at 24380.”
deccanchronicle.com
Sources
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