The Mehta family, on June 8 filed an FIR against Sashidhar Jagdishan, the MD and CEO of India’s largest private lender, HDFC Bank.
In a filing with the exchanges, the bank said that its senior officials are “being targeted by unscrupulous persons who aim to abuse the legal process” of recovering a long-outstanding loan from a defaulter named Splendour Gems. HDFC Bank called the “frivolous” FIR action “malicious and baseless”.
What are the allegations?
The Lilavati Kirtilal Mehta Medical Trust, owned and controlled by the Mehta family, and which oversees Lilavati Hospital in Mumbai, has alleged Jagdishan’s involvement in a series of financial frauds. It called upon the board of HDFC Bank, the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and the Finance Ministry to suspend the executive from all roles.
Along with the HDFC CEO Sashidhar Jagdishan, the Lilavati Trust has accused eight individuals, including former bank employees, of financial fraud and misappropriation of the trust’s funds.
How has HDFC Bank responded?
HDFC Bank in its statement added that it is willing to continue pursuing legal methods to recover public funds and will address the retaliatory actions taken by the Mehta family.
“HDFC Bank will continue to pursue all lawful remedies to recover public funds and address the retaliatory actions taken by the Mehta family as well as to defend the reputation and integrity of the Bank, its Directors and other employees,” said the private lender in its official statement.
Who is Sashidhar Jagdishan?
The MD and CEO of HDFC Bank, Sashidhar Jagdishan took charge in 2020, replacing India’s longest-serving CEO Aditya Puri. In 2023, the Reserve Bank of India approved his re-appointment for a period of three more years and he will remain at the post till 26 October 2026.
Fondly known as Sashi, Jagdishan has been a part of the HDFC Bank since 1996. He joined the bank as a manager in the finance division in 1996 and went on to become the finance head in 1999. Subsequently, he was appointed as the chief financial officer of HDFC Bank in 2008. “Sashi has played a critical role in supporting the growth trajectory of the bank,” the lender stated.
Prior to his appointment as Managing Director & Chief Executive Officer of the Bank, he was the Group Head of the Bank in addition to overseeing the functions of Finance, Human Resources, Legal & Secretarial, Administration, Infrastructure, Corporate Communications and Corporate Social Responsibility. He was named as the “strategic change agent” of the bank in 2019. With two-decade long experience, Jagdishan oversees the functions of Finance, Human Resources, Legal & Secretarial, Administration, Infrastructure, Corporate Communications and Corporate Social Responsibility.
“He has led the finance function and played a pivotal role in aligning the organisation in achieving the strategic objectives over the years,” the bank mentioned.
After graduating in physics, Jagdishan pursued his master’s degree in economics, before becoming a chartered accountant by profession.
Jagdishan holds a Bachelor of Science degree in physics from the University of Mumbai and a masters in economics of money, banking and finance from the University of Sheffield, UK. He is also a Chartered Accountant from the Institute of Chartered Accountants of India.