The ban covers advising on financial products, arranging credit, arranging deals in investments and advising on credit along with arranging custody. The DIFC branch is also prohibited from soliciting, onboarding or engaging in financial promotions with new clients.
The DFSA listed the following reasons for the ban:
- The DIFC branch was carrying on financial services by arranging financial products for customers who were not onboarded by it.
- Issues with onboarding of customers at the DIFC branch.
- Other matters related thereto.
However, the prohibition does not apply to the continued servicing of existing customers and onboarding clients who may have been offered services previously.
The lender said the DFSA restrictions will remain till amended or revoked in writing.HDFC Bank said it has initiated steps to comply with the directives and would work with the DFSA in the ongoing probe to resolve the concerns at the earliest.
The lender added that the DIFC branch business is not material to overall operations or its financial position, and would have not have a significant impact.
As of September 23, 2025, DFIC branch had 1,489 customers onboarded, including joint holders. The lender’s total customer base is 9.8 crore as of the June quarter.
The DIFC branch is one of the five locations for HDFC Bank’s overseas branch operations, the others being — Hong Kong, Singapore, Bahrain and GIFT City Gujarat.
HDFC Bank shares ended the previous session 0.6% lower at ₹944.25 apiece. The stock has gained 6% this year, so far.
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