MUMBAI: HDFC Bank has terminated three employees, including senior executives, after an internal probe into the alleged mis-selling of Credit Suisse AT-1 bonds to NRI clients at its UAE operations. The action follows regulatory scrutiny and investor complaints. Shares of the bank closed down 2.4%, continuing Thursday’s decline following the sudden resignation of the bank’s chairman Atanu Chakraborty.The employees dismissed include Sampath Kumar, group head of branch banking, Harsh Gupta, EVP for Middle East, Africa and NRI business, and Payal Mandhyan, SVP, for their roles in selling high-risk AT-1 bonds through the bank’s Dubai branch, in an episode that began in Jan 2025 and has since drawn attention to persistent concerns around such instruments after the Credit Suisse collapse.In response to a query, HDFC bank said, “The bank identified certain gaps in client onboarding requirements at its DIFC branch in the UAE and has completed a detailed and objective review of the matter. “Appropriate remedial actions have been taken in line with internal policies. Personnel changes have been undertaken along with appropriate action as per the bank’s conduct regulation.”AT-1 bonds are debt instruments with equity-like features. They offer higher yields but do not appreciate like equity, and the issuer’s liabilities can be extinguished if the bank’s net worth is impaired. In the event of bankruptcy, these instruments rank lowest among fixed income securities for repayment priority.According to allegations, staff in the Dubai and Bahrain branches persuaded NRI clients to shift FCNR deposits from India to Bahrain by presenting the bonds as fixed-maturity products with assured returns. Investors were asked to sign blank documents, and key disclosures on the perpetual nature and high risk of AT-1 bonds were omitted.These bonds were later written off during the UBS-led bailout of Credit Suisse, leading to losses for investors. The probe began in Jan 2025 after complaints from NRI investors and led to the suspension of Harsh Gupta and Payal Mandhyan. The bank’s internal investigation, conducted amid restrictions imposed by the Dubai Financial Services Authority, concluded on March 18 resulting in the terminations. The Dubai regulator barred the bank from onboarding new clients in the emirate, and the lender faces investor lawsuits.

MUMBAI: Net selling by foreign funds in the stock market is on track to break the all-time monthly record as rupee this month has been weakening to record lows at regular intervals and rising crude oil prices are threatening India’s macro fundamentals as the war in West Asia is continuing without any sign of de-escalation.So far in the month, foreign portfolio investors have taken out Rs 93,698 crore from the stock market alone, data combined from NSDL and BSE showed. This is less than Rs 500 crore from the biggest net outflow number that was recorded in Oct 2024, at Rs 94,017 crore, NSDL data showed.On an average, in the current month foreign portfolio investors (FPIs) have net sold stocks worth almost Rs 7,000 crore, withfive trading sessions remaining in the month (markets are closed on Mar 26 and Mar 31).On Friday, the FPIs took out Rs 5,518 crore net from the market although the sensex closed with a 326-point gain, a marginal reversal from the brutal Thursday session that saw nearly 2,500 points shaved off the index. So far in the month, the sensex has lost a little over 6,750 points or 8.3% mainly because of the war-induced FPI selling that also weakened the rupee.Similar to last few weeks, Friday’s session was also marked by high volatility with sensex rallying by over 1,000 points in early trades only to witness strong profit booking. At close the index was up just 0.4% at 74,533 points. On a weekly basis, the index has barely moved: The previous Friday (Mar 13) it had closed at 74,563 points. On the NSE, Nifty too showed high volatility and closed at 23,115 points, up 112 points (0.4%).During the day, traders preferred to reduce their risks ahead of the weekend with heightened uncertainty, market players said.According to Nagaraj Shetti of HDFC Securities, the near-term trend for Nifty remains weak and the present bounce back could be a sell on the rise opportunity. “A weakness below 22,900 points could open the next downside target of 22,500 points in near term. However, the immediate resistance is placed at 23,380 points,” he said.Global shares fell for a third straight session on worries the Iran war would keep upward pressure on oil prices and rekindle inflation. On Wall St, Dow fell 0.5%, S& 0.7% and Nasdaq fell 1% while British and European equities logged a fall for third week straight and LatAm stocks plunged to two-month lows.

MUMBAI: As the West Asia war rages on, India’s middle class has begun bearing the brunt. From airfares to air-conditioners, home interiors, bottled water and even regular laundry services, companies across segments are starting to take price hikes to cope with inflating input costs on the back of of supply disruptions and soaring oil, derivatives of which are key to the manufacturing of a lot of components used in daily products. Much of the price increases will hit the markets from April, industry executives said.Godrej Appliances will take price hikes of 5-10% across categories including ACs, washing machines and refrigerators from next month, a company spokesperson said. In the case of white goods and broader durables, volatile commodity (metals like copper etc) costs and new energy norms had already nudged companies to implement price increases; the war has only exacerbated the situation by triggering gas supply crunch and shortage of raw materials such as plastic.

Lack of availability of memory and SoC chips have continuously been pushing up prices of television sets and now with the war-led disruption, there is expected to be another 1-2% impact on prices, said Arjun Bajaj, director at Videotex which manufactures TVs for brands. Polymer prices, for instance, which are used in cabinet parts, cables and insulation materials have increased by nearly 40-50% per kg in recent days while cost of packaging materials have gone up 80%, said Bajaj. With input costs rising across materials such as plywood, adhesives, hardware, Bengaluru-headquartered home interior firm DesignCafe will be implementing price hikes in the range of 10-15% for new customers from April 1. “There is also growing uncertainty around material availability in the coming weeks due to fluctuating stock levels across the supply chain,” said CEO & co-founder Shezaan Bhojani. Some suppliers have also introduced temporary surcharges for 30 to 60 days, with a wait-and-watch approach thereafter, said Tanuj Choudhary, co-founder & COO at HomeLane. New Delhi-based laundry firm Perfecto Cleaners is now implementing an increase in service pricing as the shift to electric alternatives from LPG has led to rise in expenses, said founder Kshitij Rajpal. The turn around time for stores dependent on gas supplies are suffering, said Arunabh Sinha, founder at Uclean. Bisleri has raised the rates of its packaged water bottles by 11%. The impact of the war is far and wide, touching almost every sector. Indian carriers Air India, Indigo and Akasa Air have already started levying a fuel surcharge which means air tickets will become more expensive. “Discretionary spending like dining out and travel could weaken first,” said analysts at The Knowledge Company in a recent study. Besides the strain on consumer pockets, there’s also growing apprehension of job losses in labour intensive sectors such as restaurants if the turmoil persists, giving the common man more reasons to worry. “Fund flow is certainly an issue now. There are no job cuts yet but if this gets prolonged, then there will definitely be,” said Mumbai-based restaurateur and NRAI vice-president Pranav Rungta.FMCG firms may raise MRPThe full effect of the rise in plastics and logistics costs will start playing out by next month. If the situation persists, many FMCG companies will be forced to increase their MRPs to manage the high-cost environment, said Piruz Khambatta, group chairman at Rasna. “Our focus is on ensuring accessibility through the right product mix and formats. At the same time, we will continue to monitor the external environment and take appropriate action should the need arise,” said Rakshit Hargave, MD & CEO at Britannia. Margin pressure is likely to show up through smaller packs, selective hikes or lower promotions, analysts said.

US president Donald Trump’s meeting with Japan’s prime minister Sanae Takaichi on Thursday, supposed to be a routine diplomatic affair turned tense after an exchange over American strikes on Iran during a press interaction at the Oval Office.The awkward moment unfolded when a Japanese reporter asked “Why didn’t you tell US allies about the war before attacking Iran?”. In his response, Trump referenced Pearl Harbor, drawing a visible reaction and shifting the tone of what had begun as a standard diplomatic engagement.

Trump responded by saying the strikes were kept secret to maintain an element of surprise. The US president went on to say, “We didn’t tell anybody about it because we wanted a surprise. Who knows better about surprise than Japan? Why didn’t you tell me about Pearl Harbor, OK?” Takaichi did not respond to the comment, but her reaction was telling and quickly spread across social media. She widened her eyes, leaned back in her chair, and her composed smile slipped away.She chose not to respond to the remark and maintained a polite demeanor toward Trump. At one point, she even praised him, calling him the only person who “can achieve peace across the world.”

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Pearl Harbor (1941)

The Attack on Pearl Harbor took place on December 7, 1941, when Japan launched a surprise air strike on the US naval base at Pearl Harbor. More than 350 aircraft from the Imperial Japanese Navy attacked in two waves, targeting battleships, airfields and military facilities. The assault lasted about 90 minutes and caused heavy damage, destroying or damaging eight battleships and nearly 200 aircraft, many of which were hit on the ground. A total of 2,403 Americans were killed and 1,178 were injured. The attack led the United States to enter World War II the following day.Officials present at the meeting described Trump’s comment as a joke. There is no indication that it was part of any formal discussion. The White House has not issued a separate statement on the remark.The meeting focused on ties between the United States and Japan. The two countries are close allies and cooperate on economic, defence, and regional security issues, despite having been on opposite sides during World War II.During the talks, the leaders discussed defence cooperation, trade and security concerns in the Indo-Pacific region. Japan remains an important partner for the US in dealing with challenges involving China and North Korea.References to Pearl Harbor can be sensitive in diplomatic settings because of its historical impact. At the same time, the US and Japan have built a strong alliance since World War II. Leaders from both countries have, over the years, acknowledged the past while focusing on cooperation.

High stakes amid Iran conflict

The uncomfortable moment also came amid growing global tensions. US strikes on Iran have drawn Washington further into the conflict, and Trump is now seeking backing from allies, including Japan. “We’re undertaking this operation, and once it’s finished, the world will be much safer,” he said, adding that Japan’s prime minister shares his view.He has also called on Japan to deploy warships to the Strait of Hormuz, a vital route for global oil shipments that has been virtually shut by Iran since the beginning of the conflict.However, Japan faces a delicate situation. It has traditionally maintained good relations with both Israel and Arab countries and has often positioned itself as neutral. Additionally, its pacifist constitution, established after World War II, restricts military activities overseas, making any decision to send forces abroad politically challenging.(With input from agencies)