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Mumbai: India’s largest private sector lender HDFC Bank has said it has taken remedial steps, including personnel changes , after identifying gaps in client onboarding at its DIFC branch, as it faces regulatory scrutiny over its overseas operations.“The Bank identified certain gaps in client onboarding requirements at its DIFC branch in the UAE and has completed a detailed and objective review of the matter,” the lender said in response to an email query. “Appropriate remedial actions have been taken in line with internal policies. Personnel changes have been undertaken along with action as per the Bank’s conduct regulations.”The statement comes after the lender terminated three senior executives, including Group Head of Branch Banking Sampath Kumar, over their alleged role in the mis-selling of Additional Tier-1 (AT1) bonds linked to Credit Suisse , according to people with direct knowledge of the matter. The two other executives—Harsh Gupta (Executive Vice President, Middle East, Africa and NRI onshore business) and Payal Mandhyan—were also let go following internal findings.Also Read | HDFC Bank: What exactly was it? Atanu Chakrabarty's shock exit baffles global investors Gupta and Mandhyan had been suspended in January last year after the bank initiated an internal probe into the alleged mis-selling of debt products at its Dubai branch. The investigation found that several AT1 bond investors claimed they were encouraged to move their foreign currency non-resident (FCNR) deposits from India to Bahrain.The bank added that it has well-established governance frameworks and remains committed to maintaining high standards of compliance and regulatory adherence.These developments come close on the heels of the abrupt resignation of former chairman Atanu Chakraborty, who stepped down citing an “ethical” misalignment with the management.The regulatory overhang dates back to September 27, 2025, when the bank disclosed that it had been barred by the Dubai Financial Services Authority from onboarding new clients or undertaking fresh business through its Dubai International Financial Centre branch.The action followed non-compliance with regulatory requirements related to servicing clients not onboarded through the DIFC entity, as well as lapses in advisory and credit arrangement practices. The branch has since been prohibited from soliciting new clients for financial services, including investment advisory, deal arrangement, credit-related activities and custody services.Earlier reports had flagged regulatory concerns around the bank’s cross-border operating model, where client engagement, advisory and account booking were spread across jurisdictions. In some cases, relationship managers in the UAE interacted with clients, advisory was routed through the DIFC entity, while accounts were ultimately booked in the bank’s Bahrain branch—a structure that, while not uncommon in cross-border banking , drew scrutiny in this instance.