Hagens Berman has notified investors of a pending securities class action against HDFC Bank, alleging hidden misconduct involving Rs 45 crore routed through marketing budgets and misleading disclosures impacting investor confidence.
Hagens Berman has said it has notified investors in HDFC Bank that a securities fraud class action is pending over allegations tied to the lender’s handling of deposits and related payments. The firm said the case covers purchases between 17 July 2023 and 26 May 2026 and names HDFC Bank, chief executive Sashidhar Jagdishan and chief financial officer Srinivasan Vaidyanathan, among others, in claims that the bank failed to disclose material issues affecting its accounting and regulatory compliance.
The complaint centres on allegations that about Rs 45 crore was routed through the bank’s marketing budget to the Maharashtra State Road Development Corporation, or MSRDC, rather than being paid directly as interest. According to reports in Indian business publications, the payments were allegedly structured as sponsorship for a road safety campaign so MSRDC could receive returns above ordinary banking rates. Those reports said an internal audit of the marketing department for fiscal 2024 and fiscal 2025 flagged the matter and led to a vigilance probe.
Hagens Berman said the alleged conduct violated federal securities laws and meant the bank’s public statements on controls and compliance were misleading. The firm also pointed to two developments it said marked the issue surfacing: the resignation of part-time chairman and independent director Atanu Chakraborty in March, and an investigative report in late May that linked the payments to an internal probe. The firm is seeking a lead plaintiff by 13 October 2026 for investors who say they suffered losses.
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