HDFC Bank shares hit 52-week low after US lawsuit
What's the story
Shares of HDFC Bank hit a new 52-week low on Thursday, falling over 2% to an intraday low of ₹710 per share. The decline comes after a securities lawsuit was filed against the bank and two senior executives in the United States. The lawsuit accuses them of making false and misleading statements, according to Mint.
Legal action
Lawsuit filed by investor in US District Court
The lawsuit was filed by investor Jwalant Natvarlal Soneji in the US District Court for the Southern District of New York.
The complaint is a securities fraud class-action on behalf of investors who bought HDFC Bank's securities between July 17, 2023, and May 26, 2026.
The allegations center around the bank disguising payments to Maharashtra State Road Development Corp as marketing expenses to pay the state agency higher interest than other depositors.
Defense strategy
HDFC Bank denies claims, says lawsuit without merit
In response to the allegations, a spokesperson for HDFC Bank said such shareholder lawsuits are common in the US after a stock price fall.
The bank has denied the claims and said it will defend itself.
"The Bank believes the lawsuit is without merit and intends to vigorously defend itself," the spokesperson added.
Market impact
Goldman Sachs initiates coverage on HDFC Bank with 'Buy' rating
The lawsuit has had a significant impact on HDFC Bank's shares, which have fallen over 30% in just over 10 months. The bank's market capitalization has also dropped below ₹11 lakh crore.
Despite the negative sentiment, Goldman Sachs recently initiated coverage on HDFC Bank with a 'Buy' rating and a target price of ₹861 per share.
Share performance
HDFC Bank shares fall over 28% in 2026 so far
HDFC Bank's shares have fallen over 3% in a month and 28% in 2026 so far, with the stock falling around 27% in one year.
In the longer term, HDFC Bank shares have delivered negative returns of 9% over three years and 8% in five years.
The stock currently has a price-to-earnings ratio of 14 times.