HDFC Bank Banned from Adding New Clients in Dubai After Probe

HDFC Bank Ltd., India’s largest private sector lender, has been banned from onboarding new customers at its Dubai branch after a regulator flagged lapses in its processes.

The bank was penalized by a Dubai regulator for offering financial services to local clients who were not onboarded at the Dubai International Financial Centre, the Mumbai-based lender said in an exchange filing late on Friday.

The restrictions, which came into effect from Sept. 26, curtail HDFC Bank’s ability to attract new business in one of the world’s fastest-growing financial hubs.

HDFC Bank said the business conducted at its Dubai branch ...