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In a significant legal vindication for India’s largest private-sector lender, HDFC Bank has won all seven lawsuits filed against it in Bahrain by affluent investors who suffered losses on Credit Suisse Additional Tier-1 (AT1) bonds, The Economic Times reported.
The High Civil Court of Bahrain on September 9 passed favorable orders in the final two proceedings, concluding a series of litigation that saw five earlier cases dismissed between July and August 2026.
"All seven cases of legal proceedings against HDFC Bank in the CS AT1 bonds investment matter stand rejected by the Bahrain Court. All allegations were rejected outright by the Court," HDFC Bank confirmed in an exclusive statement.
In addition to dismissing the lawsuits, the Bahrain court directed the complaining investors to bear the entire costs of the legal proceedings in all seven cases.
The Fallout from FINMA's $17 Billion Wipeout
The litigation traces back to March 2023, when Swiss financial regulator FINMA orchestrated an emergency rescue merger of Credit Suisse into UBS. As part of the government-brokered rescue, Swiss authorities ordered the complete write-down of $17 billion (CHF 16 billion) of Credit Suisse AT1 contingent convertible debt to zero.
While the equity shareholders received partial compensation via UBS shares, AT1 bondholders were wiped out entirely, sparking unprecedented legal actions across London, Zurich, Singapore, and the Middle East.
Investors who had purchased the AT1 instruments through HDFC Bank’s Bahrain branch subsequently filed lawsuits alleging:
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