By Nitin Waghela
Copyright republicworld
HDFC Bank, second highest valued company in India, has been barred by the Dubai Financial Services Authority (DFSA) from onboarding new clients or partaking in fresh business via its Dubai International Financial Centre (DIFC) Branch.According to a letter to the stock exchange bourses, HDFC Bank said that its DIFC Branch received decision notice from DFSA on September 26.The independent financial regulator has prohibited the bank’s DIFC Branch from soliciting or conducting business with new clients for financial services.The ban includes advising on financial products, brokering deals in investments, arranging credit, and advising on credit along with arranging custody.DFSA has also barred the DIFC Branch from soliciting, onboarding, or engaging in financial promotions with new clients.Prohibition does not apply to the continued servicing of existing customers and onboarding clients who may have been previously offered services.DFSA restrictions will remain until amended or revoked in writing, the bank said.HDFC Bank said it has initiated steps to comply with the directives and will work with the DFSA in the ongoing probe to resolve the concerns at the earliest.”The Bank has already initiated necessary steps to comply with the directives in the above-referred notice and is committed to work with the DFSA in its ongoing investigation and to promptly remediate and address the DFSA concerns at the earliest,” HDFC Bank’s disclosure read.The bank further stated that the DIFC Branch business is not material to overall operations or its financial position and would have no significant impact.”The business undertaken at the DIFC Branch is not material to the Bank’s operations or its financial position and accordingly no material impact/ implications are expected with respect to the overall operations or financial position of the Bank,” the statement said.As of September 23, 2025, DIFC Branch had 1,489 customers onboarded, including joint holders.The bank said that the financial regulator imposed the prohibitions regarding the DIFC Branch “carrying on financial services by arranging/ advising on financial products/ credit for customers who were not onboarded by the DIFC Branch, issues with onboarding of customers at the DIFC Branch, and other matters.
