HDFC Bank shares fall amid US securities probe and weak earnings

Three US law firms have opened investigations into whether HDFC Bank and certain executives violated federal securities laws. The probes focus on alleged payments of about Rs 45 crore to the Maharashtra State Road Development Corporation that may have been mischaracterised as marketing expenses. Following the announcements, the bank’s shares slipped more than 1% in early trade on July 24, falling as much as 1.44% on the Bombay Stock Exchange and its American Depositary Receipts dropping 4.1%.

The stock decline continued on July 23, with HDFC Bank trading around 1% lower after its Q1 FY27 earnings showed modest profit growth but a dip in net interest margin, prompting investor concerns. The bank also disclosed the resolution of a ₹1 lakh crore builder‑loan portfolio. No securities class‑action suit has been filed yet, and the investigations remain preliminary.