Shares of HDFC Bank Ltd are trading flat after hitting a day’s high of Rs 954.15 on 29th September, following the Dubai Financial Services Authority’s (DFSA) decision to bar the lender’s Dubai International Financial Centre (DIFC) branch from onboarding new clients or undertaking fresh business.

The ban includes advising on financial products, arranging credit and investment deals, advising on credit, and arranging custody. The branch is also not allowed to solicit, onboard or promote services to new customers.

According to DFSA, the action was taken because the branch offered financial services to customers who were not properly onboarded. Additionally, it had issues with its onboarding process, among other concerns.

The restriction does not affect existing customers or clients who were already offered services earlier. HDFC Bank stated that it is working with the DFSA to resolve the issues and comply with the directives.

The bank added that the DIFC branch’s operations are not significant to its overall business. Therefore, it will not impact its financial position. As of 23rd September, the branch had 1,489 customers. Meanwhile, HDFC Bank’s total customer base stood at 9.8 crore in the June quarter.

The DIFC branch is one of HDFC Bank’s five overseas branches. The others are in Hong Kong, Singapore, Bahrain, and GIFT City in Gujarat.

At 12:31 PM, the shares of HDFC Bank were trading 0.23% higher at Rs 947.25 on NSE.

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