HDFC Bank Shares Hit 52-Week Low Amid Fraud Lawsuit

Shares of HDFC Bank hit a 52-week low of Rs 710 on Thursday, settling at Rs 712 on the BSE. The stock has declined more than 28 per cent year-to-date, pushing the company's market capitalization below Rs 11 trillion. The decline follows a securities fraud class-action lawsuit filed by investor Jwalant Natvarlal Soneji in the US District Court for the Southern District of New York. The complaint alleges the bank made misleading statements and disguised Rs 45 crore in payments to the Maharashtra State Road Development Corporation as sponsorship for a road safety campaign to provide a higher effective interest rate.

Market analysts attribute the pressure to a mismatch between growth delivery and market expectations, alongside concerns over asset quality in unsecured lending. Some experts predict further downside with support zones between Rs 675 and 680, while others suggest long-term investors may find value in buying on dips.

Investor sentiment is further strained by leadership instability. The term of Managing Director and CEO Sashidhar Jagdishan ends on October 26, and the bank previously saw the resignation of part-time chairman Atanu Chakraborty.