HDFC Bank has dismissed three senior staff at its Dubai International Financial Centre (DIFC) branch after identifying gaps in client onboarding procedures. Sources said the terminations are linked to allegations of mis-selling Credit Suisse additional tier-1 (AT-1) bonds.
The Dubai Financial Services Authority (DFSA) had barred the DIFC branch from onboarding new customers in September following the mis-selling concerns. HDFC Bank said it conducted a detailed, objective review of the DIFC operations, identified deficiencies in onboarding processes and implemented remedial actions in line with internal policies.
The bank said personnel changes were made and actions taken under its conduct regulations. HDFC reiterated that it has governance frameworks in place and remains committed to compliance and regulatory standards.
The move comes days after part-time chairman Atanu Chakraborty abruptly resigned, effective March 18, citing ethical concerns. In a resignation letter dated March 17 to H K Bhanwala, chairman of the Governance, Nomination and Remuneration Committee, Chakraborty said certain practices he had observed over two years conflicted with his personal values and ethics and that there were no other material reasons for his departure.
Chakraborty, a 1985-batch IAS officer of the Gujarat cadre, 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 was appointed HDFC Bank’s part-time chairman on May 5, 2021, and his term had been extended in 2024 to May 4, 2027. He took the chair during the bank’s reverse merger with parent HDFC Limited, which was completed on July 1, 2023 and created a combined balance sheet of over Rs 18 lakh crore.
