HDFC Bank has confirmed the termination of three employees following an internal investigation into regulatory lapses at its Dubai International Financial Centre (DIFC) branch.
The disciplinary action stems from a “Decision Notice” issued by the Dubai Financial Services Authority (DFSA) on September 25, 2025, which prohibited the branch from onboarding new clients for specific financial services.
The bank received this notice via email on September 26, 2025, and immediately informed Indian stock exchanges of the restriction.
The regulatory crackdown was triggered by the DIFC branch conducting financial services, such as advising on products and arranging credit, for customers who had not been formally onboarded. The DFSA also identified general issues with the branch’s onboarding processes.
In response, the bank’s Governance, Nomination and Remuneration Committee (GNRC) mandated an internal probe. Based on the findings of an investigating officer and the recommendations of a Disciplinary Committee, the GNRC pronounced the removal of these three employees from service at a meeting held on March 9, 2026.
The bank addressed the matter further on March 23, 2026, in response to a clarification sought by the National Stock Exchange regarding media reports of the firings.
HDFC Bank clarified that the terminated individuals were not members of “senior management” under SEBI regulations, which is why their dismissals were not previously disclosed as material events. The lender also stated that the employees maintain the right to appeal the order before the bank’s Board of Directors.
Despite the disciplinary actions and the ongoing regulatory restrictions in Dubai, HDFC Bank maintains that the situation has no material impact on its overall financial position or operations.
As of late September 2025, the DIFC branch served 1,489 customers, and the DFSA prohibition does not affect the servicing of these existing clients. The bank noted that the business conducted at the Dubai branch is not significant relative to the bank’s total operations and expressed its commitment to remediating the DFSA’s concerns.
