HDFC Bank has come under legal scrutiny in the United States after a class action lawsuit was filed against the lender, its CEO Sashidhar Jagdishan, and CFO Srinivasan Vaidyanathan. The complaint, brought forward by investor Jwalant Soneji, alleges that the bank disguised payments worth ₹45 crore made to the Maharashtra State Road Development Corporation (MSRDC) as marketing expenses.
According to the lawsuit, HDFC Bank offered MSRDC an interest rate of 6.01% on deposits, which was 2.51 percentage points higher than the prevailing savings account rate. Instead of directly paying the additional interest, the bank allegedly routed the excess amount through marketing expenditure and a road safety campaign, effectively masking the true nature of the payments.
The filing in the US District Court claims this practice misled investors and violated fair disclosure norms. By allegedly camouflaging interest payouts as promotional spending, the bank is accused of manipulating its financial reporting and governance standards.
The case has raised serious concerns about transparency and compliance at one of India’s largest private sector banks. Analysts believe that while the financial quantum of ₹45 crore may appear small compared to HDFC Bank’s overall scale, the reputational damage and potential regulatory fallout could be significant. The lawsuit underscores growing investor vigilance over corporate governance practices in global markets.