HDFC Bank Crashes 10% in 4 Days After AT1 Mis-Selling Scandal
Three Senior Execs Fired Bank terminated Sampath Kumar (group head branch banking), Harsh Gupta (EVP Middle East/NRI), Payal Mandhyan (SVP) after internal probe found Credit Suisse AT1 bond mis-selling
Stock Plunges 10.5% HDFC Bank drops to ₹757 Monday, down 10.5% over 4 consecutive sessions. Market cap erodes ₹96,000 crore since Chairman Chakraborty's shock resignation March 18 citing "practices not aligned with my ethics."
NRI Clients Deceived Dubai/Bahrain branches allegedly misled NRIs into moving FCNR deposits to invest in high-risk AT1 bonds marketed as "fixed-maturity safe products." $20 billion Credit Suisse AT1s written off during UBS bailout
Regulatory Crackdown Dubai Financial Services Authority (DFSA) barred HDFC Bank from onboarding new clients at DIFC branch since September 2025. RBI approved Keki Mistry as interim chairman for 3 months
What Are AT1 Bonds Perpetual debt with equity features. Rank lowest in repayment hierarchy. Can be written down or converted to equity during bank stress. NRIs lost entire investments when Credit Suisse collapsed, Swiss court later ruled write-off unlawful