Bahrain Court rejects claims by investors in Credit Suisse AT1 bonds case against HDFC Bank

The Bahrain High Civil Court has rejected claims brought by investors of Credit Suisse Additional Tier 1 Bonds (CS AT1) against HDFC Bank, with all seven legal proceedings filed in connection with the investment matter now standing rejected. The latest favourable orders were received by HDFC Bank on September 9, 2026, following judicial scrutiny of the investors’ claims and the evidence submitted before the court.

HDFC Bank said the Bahrain Court had issued favourable orders in two proceedings on September 9. The court had earlier, between July and August 2026, rejected five other similar matters involving investors of CS AT1 bonds. With the latest orders, all seven proceedings against the bank in Bahrain have been rejected.

Investors’ allegations rejected

The seven investors had made several allegations in their complaints concerning their investments in CS AT1 bonds through HDFC Bank. These included gross negligence, intentional misrepresentation, incorrect customer classification and non-disclosure of the features and characteristics of the product.

The investors had also alleged misuse of financial leverage and violation of product suitability principles in relation to their investments.

According to HDFC Bank, all these allegations were rejected outright by the Bahrain Court.

The court found that the investors had failed to produce sufficient admissible evidence to prove or substantiate the allegations made against the bank. It also found that the investors had not established that they suffered any loss owing to the bank.

In each of the seven judgments, the investors were ordered to bear the costs of the proceedings.

Follows dismissal of India complaints

The favourable Bahrain orders follow the dismissal in March 2026 by the National Consumer Dispute Redressal Commission (NCDRC) of complaints filed by investors of CS AT1 bonds against HDFC Bank.

According to the bank, the NCDRC had affirmed that HDFC Bank acted only as a facilitator in the investments. The commission also held that investors had full autonomy to decide whether to invest in CS AT1 bonds.

HDFC Bank said the NCDRC observed that the investors had voluntarily chosen to make the investments and had done so with their “open eyes”. The bank said the investors approached it after the investments failed to deliver their expected returns, while the NCDRC also found that they were well versed with the nuances of the investments at the time of investing.

HDFC Bank reiterates position

HDFC Bank said the outcomes in Bahrain demonstrate its consistent success in defending claims alleging breaches in connection with investments in CS AT1 bonds.

The bank maintained that while it would stand with customers where required, it was not in the business of underwriting investments made by customers based on their own judgement.

It said it would therefore continue to defend itself rigorously against what it described as unsubstantiated claims.

The latest Bahrain orders bring the number of rejected legal proceedings against HDFC Bank in the CS AT1 investment matter to seven, covering all cases initiated by the investors in the Bahrain Court.