HDFC Bank Faces Class Action Over Alleged Deposit Inducement Scheme

The litigation centers on allegations that HDFC leadership, including CEO Sashidhar Jagdishan and CFO Srinivasan Vaidyanathan, funneled approximately Rs 45 crore to the Maharashtra State Road Development Corporation. The complaint claims this capital was disguised as sponsorship for road safety campaigns, serving as a covert mechanism to provide the state firm with above-market interest rates in violation of Reserve Bank of India regulations. Plaintiffs argue that these practices caused HDFC to overstate its interest income and misrepresent its internal financial controls throughout the class period, which ran from July 17, 2023, to May 26, 2026.

Market confidence began to erode in March 2026 following the resignation of independent director Atanu Chakraborty, who cited a misalignment with the bank’s ethical practices. Shares fell 7.28% on the news. Further volatility followed in May 2026 after reports surfaced regarding an internal probe into the marketing expenditures, triggering a 4.1% drop in American Depositary Shares. Hagens Berman, the firm leading the investigation, is now inviting investors who incurred losses during this period to contact their legal team to participate in the pending action.