HDFC Bank Fires 3 Execs Over Credit Suisse AT-1 Mis-Selling
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- HDFC Bank fired three executives — Harsh Gupta (EVP, Middle East, Africa and NRI onshore business), Payal Mandhyan (SVP), and Kumar — over the mis-selling of Credit Suisse AT-1 bonds, per a CNBC-TV18 report cited by The Economic Times, which said it could not independently verify the report.
- Gupta and Mandhyan were suspended in January 2025 as the bank began investigating allegations at its Dubai branch; a senior executive told CNBC-TV18 the two were 'actively involved' in the mis-selling, while Kumar was fired because the incident occurred under his oversight.
- NRI bondholders, most of whom held FCNR deposits in India, alleged they were deceived into transferring those deposits to Bahrain, with one unnamed bondholder claiming staff took his signature on blank paper at the Bahrain branch.
- Part-time Chairman Atanu Chakraborty resigned earlier the same week, stating he had observed practices over the last two years that did not align with his personal values and ethics; the bank said there were 'no reasons other than those mentioned' for his exit.
- Keki Mistry was appointed interim part-time Chairman for three months with RBI approval, and denied any internal power struggle, calling any differences with Chakraborty 'minor issues.'
- HDFC Bank shares plunged 7% in two days, wiping out more than Rs 96,000 crore in market capitalisation and dragging valuation to just over Rs 12 lakh crore.
Why it matters: HDFC Bank, India's largest private lender, is absorbing three governance shocks at once — three executive terminations, an ethics-driven chairman resignation, and a 7% stock rout erasing over Rs 96,000 crore in two days. The mis-selling allegations directly implicate its cross-border Dubai and Bahrain branches serving NRI wealth, placing overseas private-banking conduct under heightened regulatory and investor scrutiny.
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