HDFC Bank Faces Securities Fraud Lawsuit Over Alleged Deposit Scheme

The litigation, led by Hagens Berman, targets HDFC Bank and key executives, including CEO Sashidhar Jagdishan and CFO Srinivasan Vaidyanathan. Plaintiffs allege that between July 17, 2023, and May 26, 2026, the bank secretly paid approximately Rs 45 crore—roughly $4.7 million—to the Maharashtra State Road Development Corporation. These payments were reportedly masked as road safety sponsorships to hide the fact that the bank was providing interest rates 2.51% higher than standard retail accounts, a direct violation of regulatory mandates.

Evidence of internal instability began appearing in March 2026, when Chairman Atanu Chakraborty resigned, citing practices that clashed with his personal ethics. The situation intensified following an investigative report by The Indian Express, which linked internal vigilance probes to the bank's top leadership. Shares reacted sharply to these disclosures, dropping 7.28% in March and an additional 4.1% in May. Investors who suffered losses during this window have until October 13, 2026, to file for lead plaintiff status as the investigation into the bank's corporate governance continues.