India’s largest private lender, HDFC Bank, has placed two senior executives on gardening leave following an internal investigation into the mis-selling of Credit Suisse Additional Tier-1 (AT1) bonds. This development comes weeks after Dubai’s financial regulator, the Dubai Financial Services Authority (DFSA), restricted the bank’s DIFC branch from onboarding new clients due to concerns over the promotion of high-risk financial products to UAE-based customers. The executives in question were reportedly involved in trades linked to Credit Suisse’s AT1 bonds, which were written off to zero during the bank’s rescue merger with UBS in 2023, resulting in significant losses for investors globally, including in the UAE. While an HDFC spokesperson stated that the bank has not identified any instances of mis-selling, the decision to place the executives on leave underscores the gravity of the situation. The DFSA’s earlier findings highlighted systemic weaknesses in documentation and client classification at the bank’s DIFC branch, mirroring complaints from UAE investors who alleged their KYC profiles were manipulated to facilitate the sale of these high-risk bonds. The internal investigation is nearing its conclusion, with regulatory scrutiny also underway in India.