HDFC Bank says Bahrain court rejects all seven Credit Suisse AT1 claims

India’s largest private sector lender, HDFC Bank, has secured favourable orders in all seven legal proceedings filed against it in Bahrain by investors who had purchased Credit Suisse Additional Tier 1 (AT1) bonds through the bank, the bank said on Thursday.

The Bahrain High Civil Court on September 9 rejected two cases filed by investors, while five other similar matters were dismissed by the court between July and August, HDFC Bank said in a statement.

According to the bank, the seven investors had alleged gross negligence, intentional misrepresentation, incorrect customer classification, non-disclosure of product features and characteristics, misuse of financial leverage and violation of product suitability principles in relation to their investments in the Credit Suisse AT1 bonds through HDFC Bank. The court rejected the allegations, the bank said.

The Bahrain court’s decisions were based on the investors’ failure to produce sufficient admissible evidence to substantiate the allegations against the bank or establish that they had suffered any loss because of HDFC Bank, according to the lender.

In all seven judgments, the investors were also ordered to bear the costs of the proceedings, HDFC Bank said.

The favourable orders in Bahrain follow a March 2026 decision by the National Consumer Disputes Redressal Commission (NCDRC), which dismissed complaints filed by investors in the AT1 bonds against HDFC Bank.

The NCDRC had held that HDFC Bank was acting only as a facilitator and that investors retained full autonomy in deciding whether to invest in the securities. The investors had voluntarily made the investments and approached the bank only after the investments failed to generate their expected returns, the bank said, citing the commission’s order. The NCDRC also held that the investors were well versed in the nuances of the investments when they made their decisions.

The litigation relates to Credit Suisse AT1 bonds, a class of securities that came under intense scrutiny after the Swiss lender’s rescue by UBS in 2023 resulted in the complete write-down of its AT1 securities.

HDFC Bank said the outcomes in Bahrain and India demonstrate its “consistent success” in defending claims relating to the investments.

“Where required, the Bank will stand with its customers however the Bank is not in the business of underwriting the investments made by the customers out of their own judgement and it will therefore defend itself rigorously against any unsubstantiated claims,” the bank said.