HDFC Bank wins cases over Credit Suisse AT-1 bonds in Bahrain

HDFC Bank has won seven cases in Bahrain against investors who had purchased Credit Suisse Additional Tier 1 (AT-1) bonds issued by the bank. The Bahrain High Civil Court rejected allegations of gross negligence, intentional misrepresentation, incorrect customer classification, non-disclosure of product features, misuse of financial leverage, and violation of product suitability principles, stating there was insufficient evidence to prove HDFC Bank's wrongdoing.

The bank also won a case in India in March 2026, dismissing similar claims. Credit Suisse AT-1 bonds are riskier securities that can be written down or converted into equity based on a bank's financial situation and regulatory triggers, as seen in Credit Suisse's $17 billion write-down in 2023. The Bahrain and Indian court decisions highlight HDFC Bank's success in defending itself against unsubstantiated claims, but the broader controversy surrounding AT-1 bonds remains a concern for investors and banks due to their higher risk and potential for substantial losses.