HDFC Bank Ltd said a Bahrain court dismissed all seven cases brought by investors who bought additional Credit Suisse Tier 1 bonds through the bank, giving India’s largest private lender by assets a favorable outcome in a dispute over alleged mis-selling of securities.
The Bahrain Civil Court issued favorable orders in two cases on September 9 after dismissing five similar cases between July and August, HDFC Bank said in a statement on Thursday.
The results rule out a series of lawsuits related to allegations that the bank mishandled the sale of high-risk securities that were destroyed during Credit Suisse’s 2023 takeover of UBS Group AG.
Seven investors alleged gross negligence, fraudulent misrepresentation, customer misclassification, failure to disclose product characteristics, abuse of financial leverage and violations of product suitability guidelines in relation to their bond investments.
HDFC Bank said the Bahrain court found that the investors failed to provide sufficient admissible evidence to substantiate the charges or establish that they suffered losses due to the bank. Investors were ordered to bear legal costs, it said.
“This demonstrates the bank’s consistent success in defending claims against the bank for alleged irregularities in connection with investments in CS AT1 bonds,” HDFC Bank said.
AT1 bonds are high-risk bank securities that can be written down to cover losses when a lender encounters financial difficulties.
Indian decision supports HDFC Bank protection
Bahrain’s decisions follow a March ruling by India’s National Consumer Disputes Redressal Commission, which dismissed complaints against HDFC Bank by investors in Credit Suisse AT1 bonds. The commission ruled that the bank acted as an intermediary and investors had full autonomy to invest in CS AT1 bonds of their choice, the bank said.
The bank said it will support customers where needed but will not guarantee investments made at its own discretion.
“Therefore, the bank will vigorously defend itself against any unfounded claims,” the statement said.
HDFC sales in Middle East under scrutiny
Investments by individuals through HDFC Bank’s offices in the Middle East have repeatedly come under scrutiny.
Last month, Mint reported that a group of around 70 investors came together to complain about the way HDFC Bank sold them a high-yield financial product. Investors said they represented about $12.5 million of the roughly $100 million raised from clients between 2017 and 2019. According to group members, the product was presented as a unique investment opportunity offering returns of 14-16%.
In September 2025, HDFC Bank said the Dubai Financial Services Authority, the financial services regulator in the Dubai International Financial Center (DIFC), had barred the bank’s branch in the special economic zone from conducting any business with new customers. Six months later, the bank said its board of directors’ governance committee had announced employee accountability measures against several employees, including firing three of them.
Former HDFC Bank chairman Atanu Chakraborty also cited the “mis-selling” of Credit Suisse perpetual bonds as a point of contention with the bank’s management in an interview with CNBC-TV18 after his sudden resignation in March. Chakraborty said his decision was due to certain practices that were “not consistent” with his personal values and ethics.