Introduction
On June 8, 2025, HDFC Bank CEO Sashidhar Jagdishan faced public scrutiny following a First Information Report (FIR) alleging his involvement in a ₹2.05 crore fraud. The complaint, filed by Lilavati Kirtilal Mehta Medical Trust, sparked waves across India’s financial community. This blog provides a deep dive into the case, HDFC Bank’s response, and the broader implications for Indian banking governance.
Who is Sashidhar Jagdishan?
Sashidhar Jagdishan was appointed Managing Director and CEO of HDFC Bank in October 2020. A veteran banker and financial expert, he holds degrees in economics and chartered accountancy. Under his leadership, HDFC has strengthened digital infrastructure, expanded into rural markets, and executed the historic merger with HDFC Ltd in 2023.
What Are the Allegations?
The FIR accuses Jagdishan and eight others of accepting ₹2.05 crore to allegedly intimidate members of the Lilavati Trust in a debt recovery dispute related to Splendour Gems. The Trust claims it has evidence in the form of diary entries and financial records suggesting coercive tactics were used to pressurize the organization.
The case was registered at the Gamdevi Police Station under sections of the Indian Penal Code (IPC) dealing with cheating, criminal breach of trust, and conspiracy. More details on the FIR can be found on NDTV’s full report here.
HDFC Bank’s Official Response
HDFC Bank issued a strong rebuttal, calling the complaint “malicious” and “motivated.” The bank clarified that it has been pursuing the recovery of a ₹65 crore loan defaulted on by Splendour Gems, and the FIR is allegedly an attempt to delay the legal proceedings. It also emphasized that the matter is sub judice and being dealt with through appropriate legal channels.
Read HDFC Bank’s official statement on Business Standard.
Impact on HDFC Bank’s Market Standing
The stock price of HDFC Bank saw a minor drop of 1.2% following the news. However, market analysts on Bloomberg noted that institutional confidence remains intact due to the bank’s strong fundamentals and transparent communication. Analysts expect the case to be legally resolved without long-term damage to HDFC’s reputation.
Contributions of Sashidhar Jagdishan
- Led the successful integration of HDFC Ltd and HDFC Bank.
- Expanded digital banking services through API and cloud platforms.
- Focused on ESG goals, increasing HDFC’s green lending portfolio.
- Strengthened rural banking infrastructure and inclusive finance.
What Comes Next?
Legal experts believe the police will evaluate the credibility of the financial records submitted by the Lilavati Trust. HDFC Bank is expected to file a counter-case or a quashing petition in the Mumbai High Court to protect its CEO and reputation. Regulatory bodies like RBI are reportedly monitoring the case.
Unless further credible evidence surfaces, the current sentiment suggests this may be a strategic move in a legal dispute rather than a systemic corruption case.
Conclusion
The case involving Sashidhar Jagdishan has added a layer of complexity to HDFC Bank’s public image. However, the bank’s robust legal stance, market confidence, and transparent communication may shield it from reputational fallout. Whether these allegations hold water remains to be seen in court, but this incident will likely intensify scrutiny on corporate governance in India’s banking sector.
For more HDFC updates, check our blog on HDFC’s Digital Banking Transformation.
