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Informist, Thursday, Sept. 10, 2026

 

NEW DELHI – The High Civil Court, Bahrain, Wednesday gave orders in favour of HDFC Bank against two litigant investors in the case on mis-selling of Credit Suisse's additional tier-I bonds, the Indian lender said in a release Thursday. Including these, the Bahrain court has so far dismissed the cases of seven litigants since July alleging gross negligence and intentional misrepresentation, as per the release. 

 

All allegations, including non-disclosure of product features and characteristics and misuse of financial leverage, were dismissed by the court for lack of evidence that the bank caused those losses, according to the release. India's National Consumer Disputes Redressal Commission had also dismissed cases along similar lines in March.

 

Additional tier-1 bonds aggregating to $20 billion were written off as part of the bailout package for Credit Suisse and were taken over by UBS, which led to losses for investors. The write-off was deemed unlawful by the Swiss Federal Administrative Court. Both UBS and the Swiss Financial Market Supervisory Authority have appealed against the ruling.

 

HDFC Bank had initiated an internal investigation on the mis-selling last year and reportedly fired three top executives linked to the activity in March. The Dubai Financial Services Authority had barred HDFC Bank from onboarding new clients at its Dubai branch due to concern over its onboarding practices and the bank's investigation into the mis-selling of bonds.

 

"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 lender said in its release.

 

For the June quarter, HDFC Bank had reported a net profit of INR 190.60 billion on total income of INR 921.84 billion. Thursday, its shares ended at INR 693.80 on the National Stock Exchange, up 1.0% from Wednesday.  End

 

Reported by Aaryan Khanna

Edited by Rajeev Pai

 

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