HDFC Bank Faces US Securities Class Action

A New York federal securities class-action has been filed against HDFC Bank and executives over allegations that the bank inflated interest payouts to Maharashtra’s state agency MSRDC by disguising them as marketing expenses. The suit, covering investors who held HDFC ADS between July 17, 2023 and May 26, 2026, claims about ₹45 crore was funneled to MSRDC at an effective 6.01% interest, a premium over standard retail rates. Plaintiffs allege these payments were routed through vendors as sponsorship for a road-safety campaign to conceal the true nature of the inducements, in potential violation of RBI norms and internal policies. The bank has rejected the claims as meritless and said it will vigorously defend itself, while investigations cited by media reports have pointed to broader governance concerns and senior-level accountability. A summons was issued in August requiring a response within 21 days, and multiple US law firms have announced inquiries into governance and disclosures related to the matter. Separately, Rosen Law Firm issued notice inviting eligible investors to join the class action, with a lead-plaintiff deadline set for October 13, 2026.