Days after HDFC Bank chairman Atanu Chakraborty resigned citing ethical concerns, the bank has terminated three senior employees over gaps in client onboarding at its Dubai International Financial Centre (DIFC) branch. Sources said the dismissals relate to the alleged mis-selling of Credit Suisse additional tier-1 (AT-1) bonds.
Following the mis-selling allegations, the Dubai Financial Services Authority (DFSA) had barred the DIFC branch from onboarding new customers in September. HDFC Bank said it identified deficiencies in onboarding procedures at the DIFC branch, completed a detailed and objective review, and has taken appropriate remedial actions in line with internal policies. Personnel changes were made and action taken under the bank’s conduct regulations. The bank reiterated that it has established governance frameworks and remains committed to compliance and regulatory adherence.
Chakraborty abruptly resigned as part-time chairman effective March 18, saying certain practices he observed over two years conflicted with his personal values and ethics. In a resignation letter dated March 17 to H K Bhanwala, chairman of the Governance, Nomination and Remuneration Committee, Chakraborty said there were no other material reasons for his departure. He had been appointed part-time chairman on May 5, 2021, after retiring as economic affairs secretary, and his term was extended in 2024 to May 4, 2027.
A 1985-batch IAS officer of the Gujarat cadre, Chakraborty retired as Secretary of the Department of Economic Affairs in April 2020 and had earlier served as Secretary of the Department of Investment and Public Asset Management (DIPAM). He became chairman during HDFC Bank’s reverse merger with parent HDFC Limited, which took effect on July 1, 2023, creating a combined balance sheet of over Rs 18 lakh crore.
