HDFC Bank Fires Three Executives Days After Chairman Resignation Over ‘Ethical’ Concerns
· Free Press Journal
India’s largest private sector lender, HDFC Bank, has fired three of its executives over alleged mis-selling of Credit Suisse’s additional tier-1 (AT-1) bonds.
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The move comes days after the bank’s chairman, Atanu Chakraborty, resigned citing ethical concerns.
On the matter of firing the executives, the bank said it had identified certain gaps in client-onboarding requirements at its DIFC (Dubai International Financial Centre) branch in the United Arab Emirates (UAE) and completed a detailed and objective review of the matter, according to a report by The Hindu BusinessLine.
HDFC Bank Stock Declines For Second Day After Resignation Of Chairman Over 'Ethical' Issues“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.
In September last year, the financial services centre had barred HDFC Bank’s DIFC branch from onboarding new customers on allegations of mis-selling.
The bank is already facing a leadership crisis after the resignation of Chakraborty as HDFC Bank’s part-time chairman and independent director.
Who Is Keki Mistry, Whom HDFC Bank Has Turned To Amid Leadership Crisis“Certain happenings and practices within the bank, that I have observed over the last two years, are not in congruence with my personal values and ethics. This is the basis of my aforementioned decision,” Chakraborty had said in his resignation letter dated March 17.
The bank has appointed Keki Mistry as interim part-time chairman with effect from March 19, 2026, for a period of three months. Mistry has had a long association with HDFC Bank. Before the merger of HDFC with HDFC Bank in 2023, Mistry was the former’s vice chairman and chief executive officer.
In the past two trading sessions, the stock of HDFC Bank has declined to its two-year low, falling by 7.4 percent on concerns over governance issues.
However, in a rare instance, even the country’s banking regulator, RBI, issued a statement to quell governance concerns in the bank. It said that there were “no material concerns on record” with regard to HDFC Bank’s conduct or governance.