HDFC Bank is currently prohibited from onboarding new clients at its Dubai International Financial Centre (DIFC) branch, following directives from the local regulatory body.
As India’s largest private sector bank, HDFC Bank has confirmed it is taking all necessary steps to comply with the notice issued by the Dubai Financial Services Authority (DFSA). The bank has also stated that it anticipates no substantial financial impact as a result of these measures.
The specific details regarding the alleged violations that prompted the DFSA’s action against HDFC Bank have not yet been fully clarified.
In a late Friday exchange filing, HDFC Bank revealed that it received a “decision notice” from the DFSA. This notice reportedly highlights alleged breaches related to financial services provided by the DIFC branch to customers not initially onboarded at that specific outlet, as well as issues with the customer onboarding process at the Dubai International Financial Centre (DIFC) Branch itself.
The bank further disclosed that, in addition to halting new customer onboarding, it is also barred from actively soliciting new clients. However, it confirmed that it is permitted to continue serving its existing customer base.
Currently, the DIFC branch caters to a total of 1,489 customers, which includes joint accounts.
HDFC Bank reiterated its commitment to promptly addressing and resolving the DFSA’s concerns. “The bank has already initiated necessary steps to comply with the directives in the notice and is committed to working with the DFSA to promptly remediate and address DFSA concerns at the earliest,” the filing stated.
Following the news, HDFC Bank’s shares saw a slight dip, closing 0.47% down at ₹945.15 on the BSE on Friday, September 26, 2025, in contrast to a 0.90% correction observed in the broader benchmark index.