Ex-HDFC Bank Chair Flags Ethics, AT-1 Probe Spurs Exec Dismissals and DFSA Dubai Ban
Former chairman Atanu Chakraborty resigned citing values and ethics concerns after highlighting an eight-year AT-1 bond mis-selling that led HDFC Bank to dismiss three senior executives. The bank’s Dubai branch remains barred from new client onboarding by DFSA since September 26, 2025, while low CASA and high cost-to-income ratios persist.
1. Resignation Over Ethics Concerns
Atanu Chakraborty stepped down as part-time chairman of HDFC Bank nearly two weeks ago, citing concerns over values and ethics without specifying incidents. He emphasized that governance issues should be prevented rather than addressed reactively.
2. AT-1 Bond Mis-selling and Executive Dismissals
The bank dismissed three senior executives this month following an internal probe into the mis-selling of AT-1 bonds to non-resident Indian clients via its Dubai and Bahrain branches, a matter singled out by Chakraborty.
3. DFSA Ban on Dubai Branch
Since September 26, 2025, the Dubai Financial Services Authority has barred HDFC Bank’s Dubai branch from onboarding new clients or launching new financial services, introducing growth constraints in the Gulf region.
4. Governance Critique and Financial Metrics
Chakraborty criticized the delayed response to conduct issues dating back to 2018, denied opposing any CEO reappointment or independent decisions on the HDB–MUFG deal, and highlighted the bank’s low CASA ratio, high cost-to-income ratio and share underperformance.