- Levi & Korsinsky LLP announced a securities class action against HDFC Bank Limited (NYSE: HDB) on behalf of purchasers between July 17, 2023 and May 26, 2026.
- Allegations focus on misstatement of net interest income and operating expense figures.
- Specifically, the bank allegedly routed Rs 45 crore ($4.7 million) as a sponsorship payment to Maharashtra State Road Development Corporation, functioning as a 2.51% interest markup to induce deposits, rather than recognizing it as interest expense.
- If interest-equivalent payments were booked as marketing spend, both interest expense and operating expense lines were misstated, distorting net interest margin and cost-to-income ratios.
- Class period metrics: net interest income grew 21.1% to 23,599 crore for Q2 FY2024, core NIM ranged 4.1% to 3.27%, cost-to-income ratios 38.0% to 42.8%.
- HDB ADRs declined $2.09 (-7.28%) on March 18, 2026 after resignation of part-time Chairman, and $1.02 (-4.1%) on May 27, 2026 after The Indian Express reported the arrangement.
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