San Francisco – September 10, 2026 -- Hagens Berman has filed a securities fraud class action against HDFC Bank Limited (NYSE: HDB), alleging the lender concealed roughly Rs 45 crore (about $4.7 million) in disguised payments to a state-owned firm to secure large deposits.
Lawsuit targets CEO and CFO over alleged deposit-inducement scheme
The complaint names Chief Executive Officer Sashidhar Jagdishan and Chief Financial Officer Srinivasan Vaidyanathan, claiming HDFC routed funds through its marketing department, disguised as sponsorship for a road safety campaign, to the Maharashtra State Road Development Corporation (MSRDC). The scheme allegedly delivered MSRDC a 6.01% interest rate on deposits, a 2.51% markup over standard retail savings rates, in violation of Reserve Bank of India Master Directions and HDFC's own anti-bribery policies.
Overstated interest income and expenses allegedly misled investors
The suit alleges the covert payments inflated HDFC's interest income and operating expenses during the class period of July 17, 2023, through May 26, 2026, rendering the bank's public statements on governance and financial controls false and misleading.
Chairman resignation and press investigation triggered stock declines
On March 18, 2026, HDFC disclosed the abrupt resignation of part-time Chairman and Independent Director Atanu Chakraborty, whose resignation letter cited bank practices over the prior two years as "not in congruence with my personal Values and Ethics." HDFC American Depositary Shares fell 7.28% on heavy volume following the announcement. On May 27, 2026, an Indian Express investigative report detailed how HDFC "camouflaged crores as marketing spend" and revealed an internal vigilance probe implicating Jagdishan and other senior leadership, sending HDFC ADS down 4.1% to close at $23.78 per share.
Firm sets October deadline for lead plaintiff applications
Reed Kathrein, the Hagens Berman partner leading the investigation, said the firm is examining whether HDFC's senior leadership concealed a scheme to funnel disguised payments while publicly presenting strong governance and compliance. Investors who purchased or acquired HDFC securities between July 17, 2023, and May 26, 2026, and suffered losses have until October 13, 2026, to petition the court for lead plaintiff status.