HDFC Bank has secured favourable rulings in two legal proceedings in Bahrain involving investors who purchased Additional Tier 1 (AT-1) bonds issued by Credit Suisse, the lender said on Thursday
The High Civil Court in Bahrain rejected the claims after reviewing the evidence, according to the bank. HDFC Bank said five other similar cases had also been dismissed between July and August 2026. In all seven matters, the court rejected the allegations against the bank and ordered investors to pay the legal costs.
The disputes concern AT-1 bonds, a type of perpetual debt instrument that carries greater risk than conventional bonds. Depending on the issuing bank’s financial position and regulatory requirements, these securities can be written down or converted into equity.
The controversy intensified in 2023 when Swiss authorities ordered the complete write-down of Credit Suisse’s AT-1 bonds during the bank’s takeover by UBS. Around $17 billion in bonds were wiped out, despite Credit Suisse shareholders receiving UBS shares.
Investors involved in the Bahrain cases alleged gross negligence, misrepresentation, incorrect customer classification and inadequate disclosure of the bonds’ risks. Other complaints included unsuitable investment advice and the misuse of financial leverage.
HDFC Bank said the court found that investors had not presented sufficient admissible evidence to establish their allegations or prove that any losses were attributable to the bank
The latest rulings follow a decision by India’s National Consumer Disputes Redressal Commission (NCDRC) in March 2026, which dismissed complaints against HDFC Bank. The commission held that the bank had acted as a facilitator and that investors retained control over their investment decisions.
The lender has also faced scrutiny over the sale of the bonds through its overseas operations. It previously took action against three executives and later disciplined 15 employees. The bank had identified gaps in client onboarding at its Dubai International Financial Centre branch.
HDFC Bank said it would continue to defend itself against what it described as unsubstantiated claims, while supporting customers where required.
