And here, I would say that it looks that HDFC staff is always confused not only for providing the better services with convenience to its customers and but also confused in deciding internal matters that proves here and the reason is that they always overdo the things...
Sorry for your situation, however at this point I would suggest you to hunt for a job. Apparently do not frame yourself, that you would be working only with HDFC. Your present situation will not support you being choosy about the employer. Also I am not from a banking sector. I believe that all the banks are regulated by a general body and the principles would be the same.
Your present designation is Branch Manager, which itself explains that you are not a junior. Rejecting a candidate would be of any reasons and you cannot find justice in the interview process with no proper reasons. Might be, the verification team would have tried to speak with someone in your present employer and the feedback should have been not that rosy.
Just cheer up and look in for a new opportunity and remember, every man is lucky one day!
So my dear first check what information have u provided to them then ask directly from bank through email.
It better to consult with advocate and send him a legal letter.
Its common to avoid court as we are Indian but do it not only for yourself but also for other people.
I saw this type of culture in many private companies. In last moment they select the post internally or appoint a person from reference may be due to influence of superior.
At last only suggest you to fight and search for another job.