Credit Suisse AT1 bond case: Bahrain Court rejects all 7 claims against HDFC Bank

Private lender HDFC Bank Ltd on Thursday (September 10) said the Bahrain Court has rejected claims in all seven proceedings initiated by investors in Credit Suisse Additional Tier 1 (CS AT1) Bonds against the bank, after examining their allegations and the evidence placed before it.

The bank said it received favourable orders from the High Civil Court, Bahrain, in two proceedings on September 9, 2026. The court had rejected five other similar matters involving CS AT1 investors between July and August.

"On September 9, 2026, HDFC Bank Limited (the Bank) received favourable orders from the High Civil Court, Bahrain, in two proceedings initiated against the Bank by the investors of Credit Suisse Additional Tier 1 Bonds (CS AT1), following judicial scrutiny of their claims and the evidentiary materials placed before the Bahrain Court," the lender said.

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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 connection with their investment in CS AT1 Bonds through HDFC Bank. “All these allegations were rejected outright by the Court,” HDFC Bank said.

According to the bank, the Bahrain Court found that the investors had failed to produce sufficient admissible evidence to prove or substantiate the allegations against the bank or establish that they had suffered any loss due to the bank. "In all the seven judgments by the Bahrain Court, the investors were ordered to bear the costs of the proceedings," the bank said.

The Bahrain outcomes follow the dismissal by the Consumer Dispute Redressal Commission (NCDRC) in March 2026 of complaints filed by CS AT1 Bond investors against HDFC Bank. HDFC Bank said the NCDRC had affirmed that the bank was only a facilitator and that investors had full autonomy to make their investments in CS AT1 Bonds.

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The bank said the NCDRC order found that investors had voluntarily chosen to make the investments and complained against the bank after the investments failed to give their expected returns. It also said the NCDRC found that the investors were well versed with the nuances of the investments at the time of investing.

"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 added.

Shares of HDFC Bank Ltd ended at ₹694.00, up by ₹6.75, or 0.98%, on the BSE.

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