2 months ago
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Days aft the resignation of HDFC Bank president Atanu Chakraborty citing ethical concerns, the slope has terminated the services of 3 employees for gaps successful lawsuit onboarding astatine its Dubai International Financial Centre (DIFC) branch.
According to sources, HDFC Bank has fired 3 elder executives implicit the alleged mis-selling of Credit Suisse’s further tier-1 (AT-1) bonds.
Following the allegations of mis-selling, the section regulator -- Dubai Financial Services Authority -- barred HDFC Bank from onboarding caller customers astatine its DIFC subdivision past September.
When approached for a comment, the slope said successful a connection that it has identified definite gaps successful client-onboarding requirements astatine its DIFC subdivision successful the United Arab Emirates (UAE) and completed a elaborate and nonsubjective reappraisal of the matter.
“Appropriate remedial actions person been taken successful enactment with interior policies. Personnel changes person been undertaken on with due enactment arsenic per the bank’s behaviour regulation,” it said.
The HDFC Bank has well-established governance frameworks and continues to stay committed to maintaining precocious standards of compliance and regulatory adherence, it added.
Mr. Chakraborty abruptly resigned arsenic the president of the country’s second-biggest lender, citing ethical concerns, effectual March 18.
This is the archetypal clip that a part-time president of HDFC Bank near mid-way, raising concerns implicit the bank’s functioning.
“Certain happenings and practices wrong the bank, that I person observed implicit past 2 years, are not successful congruence with my idiosyncratic values and ethics. This is the ground of my aforementioned decision,” Mr. Chakraborty said successful his resignation missive dated March 17.
In the missive addressed to the president of the Goverance, Nomination, Remuneration Committee, H.K. Bhanwala, Mr. Chakraborty said, “there are nary different worldly reasons for my resignation different than those stated above”.
Mr. Chakraborty was appointed arsenic the part-time president of the slope effectual May 5, 2021, astir a twelvemonth aft helium retired arsenic the economical affairs secretary.
His word was extended for different 3 years successful 2024, till May 4, 2027.
Mr. Chakraborty, a 1985-batch IAS serviceman of the Gujarat cadre, retired arsenic the caput of the Department of Economic Affairs successful April 2020. Prior to that, helium was the caput of the Department of Investment and Public Asset Management (DIPAM). Both departments are nether the Finance Ministry.
Mr. Chakraborty became the president during the reverse merger process of the slope with the genitor entity, HDFC Limited, a starring owe steadfast successful the country.
The merger of HDFC Limited with HDFC Bank became effectual connected July 1, 2023, creating a fiscal behemoth with a combined equilibrium expanse of much than ₹18 lakh crore.
