HDFC Bank delayed taking action against officials involved in the mis-selling of additional tier 1 bonds to investors in Dubai, Atanu Chakraborty, the former ‌chairman of the lender said on Monday.

Chakraborty abruptly resigned from the bank’s board earlier this month, citing differences over “values and ethics” and triggering a stock selloff and a damage control exercise by the lender.

HDFC Bank terminated three senior executives this month, following an internal investigation into the alleged mis-selling of Credit Suisse’s AT-1 bonds to non-resident Indian clients through its Dubai and Bahrain branches, according to an exchange notification dated March 23.

The move came after the Dubai Financial Services Authority imposed restrictions on the bank’s branch, preventing it from adding new clients or offering new financial services from September 26, 2025.

In an interview with CNBC-TV18 broadcast on Monday, Chakraborty said the mis-selling of AT-1 bonds through the Dubai branch posed significant reputational risks, although it was initially viewed as a technical lapse in documentation.

“While the issues have been addressed, there has been involuntary separation of three senior (executives) that has been reported, as well as 12 other people punished from major penalties to minor penalties,” Chakraborty said.

“Something goes on for eight years, and suddenly we take an action,” he said.

Chakraborty said that the re-appointment of current HDFC Bank CEO Sashidhar Jagdishan was not taken up during his tenure as chairman or as part of the nomination and remuneration committee.

The Financial Times had last week reported that the former bureaucrat stepped down due to a power struggle with the CEO. Chakraborty opposed extending the tenure of the CEO while most of the board backed him, the FT reported, citing multiple people.

The bank has not specified the reason for Chakraborty’s resignation.

Chakraborty also denied that his resignation led to the crash in HDFC Bank stock.

“I completely refute that there was value erosion on account of my resignation. I have only referred to what is in public domain; if someone is using the word insinuation for my letter, they need to read the dictionary,” he said.

His remarks come days after Sebi’s chairman Tuhin Kanta Pandey said independent directors are expected to act responsibly and not make any insinuations.