HDFC Bank CEO Sashidhar Jagdishan Faces Fraud Allegations: Lilavati Trust Demands Suspension

HDFC Bank CEO

Sashidhar Jagdishan, the Managing Director and Chief Executive Officer of HDFC Bank, India’s largest private sector bank, has found himself at the center of a major controversy. On June 7, 2025, the Lilavati Kirtilal Mehta Medical Trust, which operates Mumbai’s Lilavati Hospital, accused Jagdishan and several former bank officials of financial fraud, alleging embezzlement of ₹25 crore and other serious charges. HDFC Bank has vehemently denied these allegations, calling them “baseless” and “malicious,” and vowed to take legal action against the accusers. Here’s a detailed look at the unfolding situation and Jagdishan’s tenure as CEO.

Lilavati Trust’s Allegations

During a press conference on June 7, 2025, officials from the Lilavati Trust demanded Jagdishan’s immediate suspension and prosecution, accusing him of direct involvement in financial fraud, criminal conspiracy, evidence tampering, and obstruction of justice. The Trust, embroiled in a decades-long family feud, claimed Jagdishan received ₹2.05 crore in unaccounted cash from former trustees to harass a current trustee’s father. They further alleged that he facilitated the “illegal deposit” of ₹25 crore of Trust funds into HDFC Bank without proper authorization and received preferential medical treatment at Lilavati Hospital in exchange for his complicity. The Trust has urged the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Ministry of Finance to suspend Jagdishan, conduct a forensic audit of transactions between the bank and the Trust, and disclose any legal expenses incurred in his defense.

HDFC Bank’s Response

HDFC Bank swiftly refuted the allegations, labeling them as an attempt by “unscrupulous individuals” to obstruct the recovery of long-overdue loans owed by Lilavati Trust trustee Prashant Mehta and his family. In a statement, the bank asserted that Jagdishan is being unfairly targeted through the misuse of the legal system. “The allegations made by Lilavati Trust, its Trustees, and Officials against the Bank’s MD and CEO are baseless and malicious. The outrageous and preposterous allegations are strongly and categorically denied,” the bank said. HDFC Bank also confirmed its intent to pursue legal action to address the accusations.

Who is Sashidhar Jagdishan?

Sashidhar Jagdishan, 59, has been the MD and CEO of HDFC Bank since October 27, 2020, succeeding Aditya Puri. A Chartered Accountant with a Master’s in Economics of Money, Banking, and Finance from the University of Sheffield, UK, Jagdishan joined HDFC Bank in 1996 as a finance manager. Over his 29-year tenure, he rose to business head of finance in 1999, became Chief Financial Officer in 2008, and later served as group head, overseeing functions like human resources, legal, and corporate communications. His leadership was pivotal in the 2023 merger of HDFC Ltd. with HDFC Bank, creating a financial powerhouse with a market capitalization of ₹13.72 lakh crore as of January 2025.

Jagdishan’s strategic focus has been on sustainable growth, reducing the bank’s credit-deposit (CD) ratio to pre-merger levels (85-90% by FY27), and leveraging the mortgage business for cross-selling opportunities. Under his guidance, 85% of incremental home loan disbursals post-merger went to HDFC Bank savings account customers, up from 30-35% pre-merger. He has also prioritized cybersecurity, data privacy, and customer engagement, emphasizing a “Service First” culture. In FY24, Jagdishan was the highest-paid bank CEO in India, earning ₹10.77 crore, a slight increase from ₹10.55 crore in FY23.

Recent Developments and Leadership

Before the controversy, Jagdishan addressed shareholders in HDFC Bank’s FY24 annual report, emphasizing stability and profitable growth post-merger. He noted the bank’s transformed balance sheet, with borrowings rising to 21% from 8% pre-merger, and a lower Current Account Savings Account (CASA) ratio. Jagdishan outlined plans to grow advances slower than deposits to manage the CD ratio and maintain liquidity buffers. In April 2025, he likened the bank’s transition to Mumbai’s coastal road construction, urging investors to be patient as benefits would follow. His reappointment as MD and CEO until October 26, 2026, was approved by the RBI in September 2023.

Implications and Next Steps

The allegations have sparked significant attention, with the Lilavati Trust securing a lower court order for an FIR against Jagdishan and others. The Trust’s call for regulatory action adds pressure, but HDFC Bank’s strong denial and legal counter-strategy suggest a prolonged battle. Analysts note that the controversy could impact investor confidence, given HDFC Bank’s market leadership and Jagdishan’s role in its growth. The bank’s market value, which dipped below ₹12 lakh crore in 2024, has been a point of investor criticism, though Jagdishan’s strategies have aimed at long-term stability.

As the situation unfolds, all eyes are on the RBI, SEBI, and the Ministry of Finance to see if they will act on the Trust’s demands. Meanwhile, Jagdishan’s leadership, which has driven HDFC Bank’s expansion and navigated the complex HDFC merger, faces a critical test. The bank’s commitment to legal recourse and transparency will be key in addressing this high-profile dispute.

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Keywords: HDFC Bank, Sashidhar Jagdishan, Lilavati Trust, financial fraud allegations, CEO suspension, RBI, SEBI, banking controversy, HDFC merger.