HDFC Bank faces U.S. class-action lawsuit over MSRDC payment allegations

HDFC Bank is facing a federal securities class-action lawsuit in the U.S. District Court for the Southern District of New York. The lawsuit, filed by investor Jwalant Natvarlal Soneji, alleges the bank orchestrated a scheme to disguise interest payouts to the Maharashtra State Road Development Corporation (MSRDC) as marketing expenses.

Between 2023 and 2025, the bank allegedly routed approximately Rs 45 crore ($4.7 million) to MSRDC. The complaint claims these funds were intended to provide MSRDC with a 6.01% interest rate—a 2.51 percentage point markup over the standard 3.5% savings rate offered to regular depositors—to circumvent banking regulations. The lawsuit alleges these payments were camouflaged as sponsorship for a road safety campaign through third-party vendors.

The legal action names HDFC Bank, CEO Sashidhar Jagdishan, and CFO Srinivasan Vaidyanathan as defendants. It represents investors who purchased American Depositary Shares (ADS) between July 17, 2023, and May 26, 2026. HDFC Bank has stated the lawsuit is without merit and intends to defend itself vigorously.