Overview
- HDFC Bank has dismissed Sampath Kumar, Harsh Gupta and Payal Mandhyan, with reports indicating lapses occurred under Kumar’s supervision while Gupta and Mandhyan allegedly pitched the products.
- The bank said it identified gaps in client-onboarding at its DIFC branch, completed a detailed review and implemented remedial measures alongside personnel changes.
- The Dubai Financial Services Authority previously barred the DIFC branch from onboarding new clients after finding violations tied to advising and arranging for customers not formally onboarded.
- Investor complaints allege relationship managers marketed Credit Suisse AT1 bonds to NRI clients as fixed-return, low-risk products, steering funds from FCNR deposits and inflating incomes while failing to disclose key risks and promising 12–13% returns.
- Affected investors have filed complaints with India’s Economic Offences Wing and are exploring legal action, keeping regulatory and litigation risks in focus.