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HDFC Bank Places Two Senior Executives on Gardening Leave in Credit Suisse AT1 Sales Probe

The bank maintains it has found no mis-selling to date, pending an internal report.

Overview

  • The internal investigation is nearing completion to determine who authorised disputed AT1 sales, with disciplinary action anticipated once accountability is set.
  • Dubai Financial Services Authority barred the lender’s DIFC branch from onboarding new clients after finding weaknesses in documentation and client classification.
  • Clients in the UAE and elsewhere allege they were sold high-risk bonds despite ineligibility, including claims of KYC profiles being altered to label them as professional clients.
  • Parallel scrutiny in India includes reviews by the Enforcement Directorate and the Economic Offences Wing, according to regional reporting.
  • Credit Suisse AT1 bonds were written down to zero in 2023 during the UBS rescue, triggering large investor losses that underpin the current disputes.