The class action, filed by Hagens Berman, covers the period between July 17, 2023, and May 26, 2026. Plaintiffs allege that CEO Sashidhar Jagdishan and CFO Srinivasan Vaidyanathan oversaw a scheme to funnel approximately Rs 45 crore—roughly $4.7 million—to the Maharashtra State Road Development Corporation. By disguising these payments as sponsorship for road safety campaigns, the bank reportedly bypassed regulatory interest rate caps to secure large deposits.
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HDFC Bank Faces Class Action Over Alleged Deposit Bribery Scheme
Investors in HDFC Bank Limited have until October 13, 2026, to seek lead plaintiff status in a federal securities fraud lawsuit. The litigation targets senior leadership for allegedly masking millions in illegal deposit inducements as marketing expenses, a practice that triggered sharp drops in the bank’s American Depositary Shares.
Evidence of internal instability emerged in March 2026 when Chairman Atanu Chakraborty resigned, citing practices that were not in congruence with his personal ethics, a move that sent HDFC shares down 7.28%. Further scrutiny followed in May 2026 after an investigative report detailed the internal vigilance probe, causing an additional 4.1% decline in share price. The lawsuit claims that these maneuvers resulted in overstated interest income and compromised financial controls, misleading shareholders about the bank’s true regulatory compliance and governance standards.
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