HDFC Bank Faces Class Action Over Alleged Interest Rate Scheme

The litigation, pending in the U.S. District Court for the Southern District of New York, centers on allegations that HDFC Bank violated federal securities laws between July 2023 and May 2026. According to the complaint, the bank secretly paid approximately Rs 45 crore—roughly $4.7 million—to the Maharashtra State Road Development Corporation (MSRDC) to secure substantial deposits. By labeling these payments as road safety sponsorships, the bank reportedly provided MSRDC an interest rate 2.51 percentage points higher than standard market offerings.

An internal investigation conducted earlier this year implicated over ten senior executives, including CEO Sashidhar Jagdishan, in the arrangement. The disclosure of these practices on May 27, 2026, triggered a sharp market reaction, causing HDFC shares to drop 4.1% to close at $23.78. Investors seeking to participate in the legal action are being directed to the firm Kahn Swick & Foti, LLC for case evaluations.