Dubai Regulator Blocks HDFC Bank from Taking New Clients or Business

The Dubai Financial Services Authority (DFSA) has stopped HDFC Bank’s Dubai International Financial Centre (DIFC) branch from taking on new clients. The order was issued on September 26, 2025, and applies until further notice. The prohibition covers advising on products, arranging investments, arranging or advising on credit, custody services, and financial promotions.

Scope of the Ban

The restriction does not affect the bank’s existing customers. Clients who were already offered or provided services earlier will continue to be covered. As of September 23, 2025, the DIFC branch had 1,489 customers, including joint account holders. HDFC Bank has said the branch’s business is not material to its overall operations or financial position.

Reasons for the Prohibition

According to the filing with the exchanges, the regulator cited concerns about financial services being offered to clients not onboarded by the branch, problems with onboarding practices, and other related matters. The restrictions will stay in place until amended or withdrawn in writing by the DFSA.

Bank’s Response

HDFC Bank has said it has started steps to comply with the directives. The bank added that it is working with DFSA in its ongoing investigation and will address the issues raised. It also clarified that the development will not have a material impact on its financials.

Past Scrutiny in Dubai

Earlier this year, HDFC Bank was reported to have faced scrutiny in the UAE over the sale of Credit Suisse Additional Tier-1 bonds to retail clients. These complex instruments were written down to zero during Credit Suisse’s collapse in March 2023, leaving investors with losses. Reports suggested they were sold despite clients not meeting the DFSA’s eligibility criteria.

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HDFC Bank Share Price Performance 

As of September 29, 2025, 10:22 am, HDFC Bank share price was trading at ₹952.95 on the BSE, up ₹7.90 or 0.84% from the previous close.

Conclusion

The restrictions limit fresh business from the Dubai branch, but existing operations continue. The bank is in talks with DFSA to resolve the matter.

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