HDFC Bank fires 3 senior officials for gaps in client onboarding at its DIFC branch

HDFC Bank terminates three senior officials over client onboarding issues at its DIFC branch amid ethical concerns following chairman's resignation.

Days after the resignation of HDFC Bank chairman Atanu Chakraborty citing ethical concerns, the bank has terminated the services of three employees for gaps in client onboarding at its Dubai International Financial Centre (DIFC) branch.

According to sources, HDFC Bank has fired three senior executives over the alleged mis-selling of Credit Suisse’s additional tier-1 (AT-1) bonds.

Following the allegations of mis-selling, the local regulator -- Dubai Financial Services Authority -- barred HDFC Bank from onboarding new customers at its DIFC branch last September.

When approached for a comment, the bank said in a statement that it has identified certain gaps in client-onboarding requirements at its DIFC branch in the United Arab Emirates (UAE) and completed a detailed and objective review of the matter.

“Appropriate remedial actions have been taken in line with internal policies. Personnel changes have been undertaken along with appropriate action as per the bank’s conduct regulation,” it said.

The HDFC Bank has well-established governance frameworks and continues to remain committed to maintaining high standards of compliance and regulatory adherence, it added.