HDFC Bank shares fall over 2% to hit 52-week low: Here's why

A spokesperson of the bank said shareholder lawsuits are common in the US after stock prices fall

The stock fell after reports that a lawsuit was filed in the US against the lender and its executives alleging violation of American securities laws through misleading disclosures and governance lapses.

Investor Jwalant Natvarlal Soneji filed a securities fraud class-action complaint against the bank and two senior executives in the US District Court for the Southern District of New York on August 13 on behalf of investors who purchased HDFC Bank securities between July 17, 2023, and May. 26, 2026, according to a Mint report.

The complaint centres on allegations that the Bank disguised payments made to the Maharashtra State Road Development Corp as marketing expenses in order to compensate the state agency for interest above the rate available to other depositors, reports said. A spokesperson of the bank said such shareholder lawsuits are common in the US after stock prices fall. The spokesperson said the claims are without merit and added the bank will defend, itself strongly.

“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 Bank believes the lawsuit is without merit and intends to vigorously defend itself,” the bank’s spokesperson said.

On August 27, shares of HDFC Bank closed trading 2.2% lower at Rs 711 apiece on the National Stock Exchange, down 2.2% from Wednesday and were among the worst hit in the Nifty 50 index. Overnight, the stock’s American Depository Receipts declined nearly 2%.

So far in 2026, the stock fell 28%, on course for its worst annual drop since 2008.. Its market capitalisation is Rs 10.95 lakh crore.

“The US class-action lawsuit has emerged as a near-term overhang, denting sentiment and tempering investor optimism despite the stock’s attractive valuations,” Aishvarya Dadheech, founder and chief investment officer at Fident Asset Management, told Reuters.

“The Street is likely to remain cautious until further details emerge.”

The lender’s shares had slid in March after its part-time chair abruptly resigned citing ethical differences with management.

Uncertainty over chief executive Sashidhar Jagdishan’s tenure also remains an overhang for the stock, traders told Reuters. Jagdishan’s term ends on October 26.

A temporary extension would prolong succession concerns and could pressure the stock further, while a three-year renewal would remove a key uncertainty, Macquarie said.

HDFC Bank reported a net profit of Rs 19,060 crore in the first quarter of the 2026-27 financial year (Q1FY27), marking an increase of 5% year-on-year (YoY) from Rs 18,155 crore in the same period last year, driven by healthy loan growth and controlled credit costs.

The bank’s net interest income, or the difference between interest earned on loans and expended on deposits, rose by 7% to Rs 33,534 crore in the first quarter from Rs 31,438 crore in the year-ago period.

Net interest margin was at 3.26% on total assets, and 3.40% based on interest-earning assets.

The Mumbai-based lender’s asset quality showed a slight improvement as its gross non-performing assets, as a percentage of total advances, came in at 1.17% compared with 1.4% in the year-ago period. In absolute terms, gross NPAs came in at Rs 35,846 crore.

Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

SEBI registered research analyst

Stock market

Accurate intraday tips

Call or whatsapp: +91 9924987385 / +91 7096190322

www.moneywealth.co.in