Archive · 27 Aug 2026
HDFC Bank Faces US Class Action Over Alleged Securities Violations
An investor has sued HDFC Bank in the United States on behalf of a larger group of investors.
The lawsuit says the bank may have used marketing payments to hide extra interest paid to a state agency.
The agency was the Maharashtra State Road Development Corporation.
The complaint says the agency received an interest rate higher than the rate offered to ordinary savings-account customers.
Investors also say HDFC Bank did not give complete information about the arrangement and its internal investigation.
They claim this made the bank’s public statements misleading and caused losses when its shares fell.
HDFC’s US-traded shares fell after the resignation of chairman Atanu Chakraborty and after a newspaper report about the payments.
HDFC Bank says the lawsuit is without merit and intends to fight it.
The allegations have not been proven by a court.
Investor Jwalant Natvarlal Soneji filed a proposed securities-fraud class action against HDFC Bank and executives Sashidhar Jagdishan and Srinivasan Vaidyanathan in a New York federal court.
The complaint alleges HDFC Bank disguised about ₹45 crore in payments to the Maharashtra State Road Development Corporation as marketing or sponsorship expenses.
Investors claim the arrangement effectively provided MSRDC a 6.01% interest rate, allegedly 2.51 percentage points above the rate offered on other savings accounts.
The lawsuit alleges misleading disclosures, overstated interest income and operating expenses, and violations of US securities laws and HDFC Bank policies.
HDFC Bank rejected the lawsuit as without merit and said it would defend itself, while summons require the defendants to respond within 21 days of service.
- Who
- Investor Jwalant Natvarlal Soneji sued HDFC Bank, Chief Executive Officer Sashidhar Jagdishan and Chief Financial Officer Srinivasan Vaidyanathan.
- What
- A proposed US securities-fraud class action alleges misleading disclosures, improperly classified payments and investor losses.
- When
- The complaint was filed on 13 August 2026; summons were filed on 14 August. The proposed class covers purchases from 17 July 2023 through 26 May 2026.
- Where
- The US District Court for the Southern District of New York; the alleged payments involved the Maharashtra State Road Development Corporation in India.
- Why
- The plaintiff alleges that HDFC Bank concealed payments and related governance and regulatory issues, causing investors to buy securities at artificially inflated prices and suffer losses.
Investor allegations
HDFC Bank’s defense
Disclosure and securities violations
Investor allegations
The complaint alleges that HDFC Bank made materially false or misleading statements, failed to disclose adverse information and violated Sections 10(b) and 20(a) of the US Securities Exchange Act.
HDFC Bank’s defense
HDFC Bank says the lawsuit is without merit and intends to vigorously defend itself. The allegations have not been established by a court.
Payments to MSRDC
Investor allegations
Investors allege that differential interest paid to MSRDC was routed through marketing or sponsorship arrangements and that senior management approved the scheme.
HDFC Bank’s defense
HDFC Bank has rejected the lawsuit, while the court has made no finding on whether the payments were improperly classified, unlawful or policy violations.
Effect on investors
Investor allegations
The plaintiff claims the alleged conduct inflated HDFC securities and caused losses when the ADS price fell after disclosures concerning the chairman’s resignation and the MSRDC payments.
HDFC Bank’s defense
The bank says such shareholder lawsuits are common in the United States after a stock decline, and the amount of any damages remains undetermined.
- Plaintiff
- Jwalant Natvarlal Soneji, an HDFC Bank investor
- Defendants
- HDFC Bank, Sashidhar Jagdishan and Srinivasan Vaidyanathan
- Alleged payments
- Approximately ₹45 crore, or about $4.7 million, allegedly paid to MSRDC
- Interest rate cited
- 6.01%, allegedly 2.51 percentage points above the 3.5% savings rate cited for other customers
- Proposed class period
- 17 July 2023 to 26 May 2026
- Share-price declines cited
- HDFC’s ADS fell 7.28% on 18 March 2026 and 4.1% on 27 May 2026, according to the complaint
- Relief sought
- Unspecified compensatory damages, interest, legal and expert costs, other relief and a jury trial
