HDFC Bank Fires 3 Senior Executives Over Alleged AT-1 Bond Mis-Selling Linked to Credit Suisse

HDFC Bank has reportedly terminated three senior executives following allegations of mis-selling AT-1 bonds linked to Credit Suisse, raising concerns over compliance and investor protection.

According to reports, the executives were held accountable for their roles in the sale of these high-risk financial instruments, particularly to NRI clients.

Among those removed is Sampath Kumar, Group Head of Retail Branch Banking, who was reportedly held responsible for oversight failures. While not directly involved in the sales process, the alleged mis-selling occurred under his division, placing accountability on leadership.

Harsh Gupta, who managed NRI and overseas business operations, is said to have played a direct role in selling AT-1 bonds and targeting NRI investors.

Another executive, Payal Mandhyan, was reportedly involved in the same vertical and is accused of actively participating in the mis-selling process, including allegedly misleading clients about the risks involved.

The controversy is linked to allegations that NRI investors were provided incomplete or misleading information regarding the nature of AT-1 bonds. Some claims also suggest that clients were encouraged to transfer funds abroad and sign incomplete documentation.

The incident has sparked wider concerns about sales practices in the banking sector and the need for stricter oversight when dealing with complex financial products.