Bahrain court rejects claims by litigants in Credit Suisse CS AT1 bonds case against HDFC Bank

HDFC Bank said it has received favourable orders from 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.

Between July and August 2026, the Bahrain Court also rejected five other similar matters concerning investors of CS AT1, HDFC Bank said.

The seven investors in their complaints had alleged gross negligence, intentional misrepresentation, incorrect customer classification, non-disclosure of product features/characteristics, misuse of financial leverage and violation of product suitability principles with respect to their investment in CS AT1 Bonds through the Bank.

All these allegations were rejected outright by the Court, HDFC Bank said.

“The Bahrain Court rejected their claims outright after finding that the investors had failed to produce sufficient admissible evidence to prove/substantiate these allegations against the Bank or that they suffered any loss owing to the Bank,” it said.

“In all the seven judgments by the Bahrain Court, the investors were ordered to bear the costs of the proceedings,” it added.

The favourable outcomes in Bahrain Court follow dismissal by the National Consumer Dispute Redressal Commission (NCDRC) in India in March 2026 of complaints by the investors of CS AT1 Bonds against the Bank.

“This demonstrates the Bank’s consistent success in defending claims against the Bank of alleged breaches in connection with the investment in the CS AT 1 Bonds,” the bank said.

“In its order, NCDRC affirmed that the Bank was only a facilitator and the investors had full autonomy to make their investments in CS AT1 Bonds as per their choice and that the investors voluntarily with their open eyes chose to make these investments and complained against the Bank only after these investments had failed to give their expected returns and that the investors were well versed with the nuances of the investments at the time of investing,” HDFC Bank said in the statement.

“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,” it added.