The BRICS TimesDubai branch of HDFC Bank faces DFSA restrictions for providing services to clients not officially onboarded by the branch.
DFSA Bars HDFC Bank Dubai from Adding New Clients
HDFC Bank Ltd. has informed the Mumbai stock exchanges that its Dubai branch has been restricted from onboarding new customers until further notice.
The Dubai Financial Services Authority (DFSA) found that the branch located in Dubai International Financial Centre (DIFC) had been offering financial services to clients who were never officially onboarded. The regulator also highlighted issues with the branch’s customer onboarding procedures and related operations.
“The prohibition does not apply to existing customers of HDFC Bank Dubai, or onboarding and servicing of clients who may have been previously offered or provided financial services while not being customers of the branch,” the bank said in a stock exchange filing.
HDFC Bank confirmed that the restriction will remain effective until DFSA decides otherwise and stated that the development has no material impact on its financial performance.
“The bank has already initiated necessary steps to comply with the directives in the notice, and is committed to work with the DFSA to address the concerns at the earliest,” the filing added.
Regulatory Scrutiny Hits HDFC Bank Dubai Again
HDFC Bank Dubai has faced regulatory action before. Earlier this year, allegations surfaced that the bank sold high-risk Credit Suisse bonds to retail investors in the UAE, leaving many with losses after the Swiss bank’s collapse.
According to reports by Khaleej Times on June 27, 2025, clients purchased Additional Tier-1 bonds, which were complex financial instruments, despite failing to meet DFSA’s financial or expertise requirements. These bonds were later written down to zero during Credit Suisse’s emergency merger with UBS in March 2023.
Market Reaction to DFSA Action
HDFC Bank shares declined 0.47% to ₹945.15 on the BSE on Friday, while the benchmark Sensex fell 0.90% to 80,426.46 points.
