- On August 27, reports emerged of a US lawsuit against HDFC Bank and its executives alleging misleading disclosures and governance lapses.
- On August 27, HDFC Bank shares fell over 2% to an intraday low of Rs 710, and at 12:15 pm were at Rs 711 on the NSE, down 2.2%.
- So far in 2026, the stock has fallen 28%, with market capitalisation at Rs 10.95 lakh crore.
HDFC Bank shares fell over 2% to ₹710 on August 27, marking a 52-week low after a lawsuit was filed in the US alleging misleading disclosures and governance lapses. The complaint, initiated by investor Jwalant Natvarlal Soneji, claims violations of American securities laws concerning financial misreporting.12
The lawsuit, filed in the US District Court for the Southern District of New York, targets the bank and two senior executives, representing investors who purchased HDFC Bank securities between July 17, 2023, and May 26, 2026. Allegations include that the bank disguised payments to the Maharashtra State Road Development Corp as marketing expenses to compensate for interest rates above those available to other depositors.3
A bank spokesperson stated, “In the United States, these types of shareholder lawsuits are incredibly common after a company experiences a stock drop, and many companies listed in the US routinely defend these lawsuits each year.” The spokesperson emphasized that the claims are without merit and that the bank intends to “vigorously defend itself.”
As of August 27, HDFC Bank's shares were among the worst performers in the Nifty 50 index, with a decline of nearly 28% in 2026. The bank's market capitalization stands at ₹10.95 lakh crore. Despite the lawsuit, HDFC Bank reported a net profit of ₹19,060 crore in Q1FY27, a 5% increase year-on-year, driven by healthy loan growth and controlled credit costs.
The bank's net interest income rose by 7% to ₹33,534 crore, with a net interest margin of 3.26% on total assets. Its asset quality showed slight improvement, with gross non-performing assets at 1.17% compared to 1.4% in the previous year.
“The stock hit an intraday low of Rs 710 and was down 2.2% at Rs 711 on the NSE by 12:15 pm, among the worst hit in the Nifty 50. So far in 2026, shares have fallen 28%, with market capitalisation at Rs 10.95 lakh crore.”
