Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against HDFC Bank Limited (HDB)

NEW YORK, Aug. 19, 2026 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired HDFC Bank Limited (“HDFC” or the “Company”) (NYSE: HDB) securities between July 17, 2023 and May 26, 2026, inclusive (the “Class Period”).

The Complaint alleges that Defendants failed to disclose to investors that: (1) HDFC Bank camouflaged payments as marketing spend to pay higher interest to a state firm in order to induce deposits; (2) these activities were approved by senior management; (3) these activities likely violated regulations and the Company’s own policies, including those that prohibit payments that could constitute improper inducement; (4) as a result of the foregoing, the Company’s interest income and operating expenses were overstated; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

The Complaint alleges that on March 18, 2026, during U.S. market hours, HDFC filed a letter with the Bombay Stock Exchange and the National Stock Exchange of India Limited, reporting the resignation of Mr. Atanu Chakraborty from his roles as part-time Chairman and Independent Director of HDFC. The Complaint further alleges that the Company’s letter attached Mr. Chakraborty’s resignation letter, which stated that “[c]ertain happenings and practices within the bank, that I have observed over last two years, are not in congruence with my personal Values and Ethics. This is the basis of my aforementioned decision.”

The Complaint alleges that on this news, the price of HDFC’s American Depositary Shares (“ADS”) fell $2.09, or 7.28% to close at $26.62 per share on March 18, 2026, on unusually heavy trading volume.

The Complaint further alleges that on May 27, 2026, before the market opened, The Indian Express published an article entitled “HDFC Bank ‘camouflaged’ crores as marketing spend to pay higher interest to state firm.” The Complaint continues to allege that the article reported that HDFC Bank had made covert payments of approximately “Rs 45 crore,” or approximately $4.7 million USD, to the Maharashtra State Road Development Corporation (“MSRDC”) to induce MSRDC to make large deposits with the Company. The Complaint alleges that the Company offered 6.01% interest to MSRDC, a 2.51% markup over the interest offered to other savings accounts, and paid that markup by “disguis[ing] [it] as sponsorship payments for a road safety awareness campaign run by MSRDC.” The Complaint further alleges that reportedly, an internal probe in March and April 2026, concluded that over ten top officials bore responsibility, including HDFC’s CEO Sashidhar Jagdishan.

The Complaint alleges that on this news, HDFC’s ADS price fell $1.02, or 4.1%, to close at $23.78 per share on May 27, 2026, on unusually heavy trading volume.

Investors who purchased or otherwise acquired shares of HDFC should contact the Firm prior to the October 12, 2026 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.