US Shareholder Lawsuits Probe HDFC Bank Over Alleged Violations

Three United States‑based shareholder law firms—Howard G. Smith, Frank R. Cruz, and Glancy Prongay Wolke & Rotter—have launched separate preliminary investigations into HDFC Bank. The probes examine whether the Indian lender breached U.S. federal securities laws after a May report alleged that HDFC paid about ₹45 crore ($4.7 million) to the Maharashtra State Road Development Corporation (MSRDC) to secure large institutional deposits, recording the payment as a marketing expense. HDFC Bank, whose American Depositary Receipts (ADRs) trade on the New York Stock Exchange, denies the allegations.

The investigations are in early stages and do not yet constitute lawsuits or regulatory actions. The firms are inviting investors who suffered losses in HDFC ADRs to contact them and are assessing whether the available evidence justifies legal action under U.S. securities regulations. A senior advocate at the Supreme Court of India noted that the inquiries are preliminary assessments rather than court proceedings.