A class action lawsuit has been moved against HDFC Bank in the United States for alleged securities law violation. The suit was filed against the company by investors on August 13, according to the details shared on Wednesday.
After the news emerged, the American Depository Receipts of HDFC Bank fell nearly 1% in the US. The ADRs were trading 0.87% lower at 23.43 at 9:55 pm IST.
Jwalant Natvarlal Soneji, an investor in the lender, had filed the securities-fraud class-action complaint in the US District Court for the Southern District of New York, seeking to represent investors who acquired HDFC Bank securities between July 17, 2023 and May 26, 2026.
The lawsuit centres on allegations that the bank disguised payments of about Rs 45 crore to the Maharashtra State Road Development Corporation as marketing expenses, allegedly enabling the state agency to receive an effective interest rate of 6.01%—well above the rate offered to other depositors.
The lawsuit, filed by Glancy Prongay Wolke & Rotter LLP, alleges that the payments were routed through the bank's marketing department as sponsorships for a road-safety campaign and were approved by senior management.
The allegations follow an internal vigilance probe and a May 27 report by The Indian Express.
The complaint also cites the resignation of former HDFC Bank chairman Atanu Chakraborty, who referred to practices he had observed that were inconsistent with his personal values and ethics.
HDFC Bank's American depositary shares fell 4.1% on May 27 following the report, according to the complaint.
The lawsuit follows investigations announced by three US law firms into the bank's disclosures and governance practices, escalating the matter from preliminary probes to formal litigation.
HDFC Bank has previously denied wrongdoing. An independent legal review commissioned by the bank concluded that there was no evidence substantiating Chakraborty's allegations.
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Orai is a city and a municipal board in Jalaun district in the Indian state of Uttar Pradesh. It is the district headquarters for Jalaun District.
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