HDFC Bank Limited has informed the Exchange regarding a press release dated Jun 08, 2025, titled "FIR against MD & CEO of the Bank".
HDFCBANK · price
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HDFC Bank has issued a press release addressing media reports about an FIR filed by Lilavati Kirtilal Medical Trust (linked to the Mehta family) against the bank's MD & CEO. The bank describes the complaint as retaliatory, filed by borrowers who defaulted on a 1995 consortium loan through Splendour Gems Limited (formerly Beautiful Diamonds Limited). Outstanding dues to HDFC Bank stand at approximately ₹65.22 crore as of May 31, 2025, despite a 2004 Debt Recovery Tribunal recovery certificate. The bank has strongly rejected the allegations as 'malicious, baseless and outrageous,' stating they are attempts to obstruct legitimate recovery proceedings. HDFC Bank affirmed its commitment to corporate governance and indicated it will pursue all legal remedies.
Negative headline risk for the stock in the short term as the FIR involves the bank's top leadership. However, the bank has framed the issue as a borrower-driven tactic to avoid repayment, which may limit lasting damage if investors view the allegations as baseless. Watch for further regulatory or legal developments that could affect management stability.