HDFC Bank stock to be in focus after Mehta family's FIR against CEO over Lilavati Trust allegations

HDFC Bank shares are set to be in focus of stock market investors on Monday, 9 June 2025, after the Mehta family filed an FIR (First Information Report) against the Managing Director and Chief Executive Officer (CEO) Sashidhar Jagdishan on Sunday. 

The institutional lender called the FIR action “malicious and baseless” and said that the senior officials are currently being targeted by ‘unscrupulous persons’ who aim to abuse the legal process of recovering long outstanding loans from a defaulter named Splendour Gems Ltd.

“Having exhausted all legal avenues without success, these individuals have now resorted to launching personal attacks against HDFC Bank and its MD & CEO in a clear attempt to malign their reputation and intimidate HDFC Bank into halting its recovery actions,” said the bank in the official statement.

This FIR comes despite the Debt Recovery Tribunal order from 2004, which granted HDFC Bank the ‘recovery certificate’ for the outstanding dues, which remain “substantially unpaid” by the defaulter. The Mehta family-owned Splendour Gems defaulted on its loans in 2001. 

Lilavati Trust allegations

Lilavati Kirtilal Mehta Medical Trust is also owned and controlled by the Mehta family, which was seeking the HDFC Bank CEO's suspension and legal prosecution over alleged involvement in financial fraud and fund corruption related to the trust.

According to Mint's earlier report, the Lilavati Trust has also accused eight individuals, including former bank employees, of financial fraud and misappropriation of the trust's funds.

The bank plans to pursue legal methods to recover public funds and will address the retaliatory actions taken by the Mehta family. 

HDFC Bank Share Price

HDFC Bank shares closed 1.42 per cent higher at ₹1,978.70 after Friday's stock market session, compared to ₹1,950.90 at the previous market close. The company disclosed the FIR filing on Sunday evening, 8 June 2025.

The shares of the largest private bank in India have given stock market investors more than 100 per cent return on their investment in the last five years and 26.69 per cent gains in the last one-year period.

On a year-to-date (YTD) basis, the shares have gained 10.95 per cent in 2025, and are trading 3.39 per cent higher in the last five trading sessions.

HDFC shares hit their 52-week high levels at ₹1,996.30 on Friday, 6 June 2025, while the 52-week low level was at ₹1,546.85 on 6 June 2024, exactly one year ago. The institutional lender's market capitalisation (M-Cap) stands at over ₹15.15 lakh crore as of the market close on Friday, 6 June 2025.

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