NEW DELHI: The Bahrain High Civil Court has rejected claims by investors in Credit Suisse Additional Tier 1 (CS AT1) bonds against HDFC Bank, with all seven legal proceedings filed against the bank in the matter now dismissed.
In its latest orders on September 9, the Bahrain court rejected two proceedings initiated by investors against HDFC Bank after examining their claims and the evidence submitted before it. The court had already dismissed five similar cases between July and August 2026, taking the total number of rejected cases to seven.
The investors had alleged gross negligence, intentional misrepresentation, incorrect customer classification, non-disclosure of product features, misuse of financial leverage and violation of product suitability principles in relation to their investments in CS AT1 bonds through HDFC Bank.
The court rejected the allegations, finding that the investors had failed to produce sufficient admissible evidence to substantiate their claims against the bank or establish that they had suffered losses due to any action by HDFC Bank. In all seven judgments, the investors were also directed to bear the costs of the proceedings.
The Bahrain court's orders follow a March 2026 ruling by the National Consumer Disputes Redressal Commission (NCDRC), which dismissed complaints filed by investors in the CS AT1 bonds against HDFC Bank.
According to the bank, the NCDRC had held that HDFC Bank acted only as a facilitator and that investors had the autonomy to decide whether to invest in the bonds. The commission also noted that the investors had voluntarily made the investments and raised complaints after the investments failed to deliver the expected returns.
The CS AT1 bonds were wiped out as part of the emergency takeover of Credit Suisse by UBS in 2023, resulting in significant losses for investors.
HDFC Bank said the favourable outcomes in Bahrain and India demonstrate its consistent defence against claims alleging breaches in connection with 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.
