Overview
- A securities class action was filed in the U.S. District Court for the Southern District of New York on Thursday alleging HDFC disguised about Rs 45 crore as marketing or sponsorship payments to the Maharashtra State Road Development Corporation to pay a 6.01% rate and induce large deposits.
- HDFC has called the suit meritless and will defend itself, while an internal board review completed in July characterized the conduct as 'business overreach' and fined CEO Sashidhar Jagdishan, CFO Srinivasan Vaidyanathan and another executive ₹1 lakh each with warning letters to other staff.
- Investors reacted to the filings and earlier reporting with selling pressure that sent HDFC shares and ADRs down roughly 2% on the relevant trading session and left the stock about 28% lower year to date at a 52‑week low.
- Several U.S. plaintiff law firms have issued notices to HDFC investors and are competing to be lead counsel; the firms cite a proposed class period from July 17, 2023 to May 26, 2026 and set lead‑plaintiff application deadlines in October 2026.
- The litigation adds to existing governance and reputational strains on HDFC, which include a March resignation by a part‑time chair over ethical concerns, complaints over third‑party life‑settlement sales through Dubai operations, and uncertainty over CEO succession that could prolong market and regulatory scrutiny.