HDFC Bank faces class-action lawsuit in US, shares decline

A federal securities class-action lawsuit has been filed against HDFC Bank in New York, alleging that the private sector lender orchestrated a scheme to illegally inflate interest payouts to a state government agency. The complaint, filed by investor Jwalant Natvarlal Soneji, targets HDFC Bank, its CEO Sashidhar Jagdishan, and CFO Srinivasan Vaidyanathan.

The lawsuit claims that between 2023 and 2025, HDFC Bank routed approximately 45 crore rupees ($4.7 million USD) in differential interest payments to the Maharashtra State Road Development Corporation (MSRDC) by disguising them as marketing expenses. The complaint alleges that this violated RBI norms and HDFC Bank's internal policies, leading to materially false SEC filings.

The plaintiffs are seeking class certification, damages, and a jury trial, alleging that HDFC Bank executives acted recklessly and caused significant investor damage.