The Indian stock market is bracing for impact on Monday, June 9th, 2025, following the filing of a First Information Report (FIR) against HDFC Bank's Managing Director and Chief Executive Officer (CEO), Sashidhar Jagdishan. The FIR, filed by the Mehta family, adds another layer of complexity to an already contentious situation.
HDFC Bank's Response: The bank vehemently denies the allegations, calling the FIR "malicious and baseless." They claim the action is a retaliatory move by "unscrupulous persons" attempting to halt the recovery of long-outstanding loans from a defaulter, Splendour Gems Ltd. The bank highlights a 2004 Debt Recovery Tribunal order granting them a recovery certificate for the substantially unpaid dues. This default dates back to 2001.
Despite the unfolding drama, HDFC Bank shares closed 1.42% higher on Friday, June 6th, 2025, at ₹1,978.70. The bank disclosed the FIR filing on Sunday evening.
Strong Performance: It's worth noting that HDFC Bank shares have delivered impressive returns for investors: over 100% in the last five years and 26.69% in the last year alone. Year-to-date (YTD), the shares are up 10.95% in 2025, and 3.39% higher over the last five trading sessions. The stock reached its 52-week high of ₹1,996.30 on Friday, June 6th, 2025, a significant contrast to its 52-week low of ₹1,546.85 on June 6th, 2024.
Market Capitalization: HDFC Bank boasts a market capitalization of over ₹15.15 lakh crore as of Friday's market close, solidifying its position as a major player in the Indian financial landscape.
Monday's Outlook: The market's response to this unexpected development will be keenly observed. Will the allegations impact investor confidence in HDFC Bank, or will the bank's strong performance and confident response mitigate any negative sentiment? Only time will tell.
