In a clarification to exchanges, the bank referred to a report on the matter and said the action traces back to a decision notice received on September 26, 2025, from the Dubai Financial Services Authority (DFSA) by its branch in the Dubai International Financial Centre (DIFC).
The bank said its Governance, Nomination and Remuneration Committee (GNRC) had directed an internal investigation under its Conduct Regulations. The investigating officer submitted findings to the Disciplinary Committee, which, after discussions, recommended staff accountability actions to the GNRC.
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“In relation to the said matter, the Governance, Nomination and Remuneration Committee (GNRC) of the bank directed an internal investigation to be done by an investigating officer in terms of the Conduct Regulations of the Bank and submit its report to the Disciplinary Committee.
Based on the findings of the investigating officer, the Disciplinary Committee, after detailed discussions, provided its recommendations on the staff accountability actions to the GNRC,” according to a stock exchange filing.
At its meeting on March 9, 2026, the GNRC decided on the actions, including the removal of the three employees from service. The bank said the employees can appeal the decision before the Appellate Authority, which is the board of directors.
On stock movement, the bank said the information was not required to be disclosed under SEBI regulations as the individuals were not part of senior management. “This did not have any material impact on the Bank,” it said, adding that the development does not explain movement in its shares. The bank also said no regulatory or legal proceedings have been initiated against the employees.
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Last week, CNBC-TV18 had reported that HDFC Bank had terminated Sampath Kumar, Group Head of Branch Banking, along with two other senior executives over their alleged involvement in the mis-selling of Credit Suisse’s additional tier-1 (AT1) bonds.
The other two executives include Harsh Gupta, Executive Vice President for the Middle East, Africa and NRI onshore business, and Payal Mandhyan, Senior Vice President. Both had been suspended since January last year pending the outcome of an internal probe linked to the Dubai branch.
The issue pertains to allegations by primarily non-resident Indian (NRI) investors, who claimed they were misled into shifting their foreign currency deposits and sold AT1 bonds as fixed-maturity instruments, despite their perpetual nature.
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These bonds, worth $20 billion, were written off during the Credit Suisse bailout, although a Swiss court later termed the write-off unlawful, a ruling currently under appeal. Following the episode, the Dubai Financial Services Authority barred the bank from onboarding new clients from its Dubai branch.
Shares of HDFC Bank Ltd ended at ₹743.75, down by ₹36.70, or 4.70%, on the BSE.
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