HDFC Bank on Thursday said it has secured favourable orders from the High Civil Court in Bahrain in two proceedings brought by investors who had purchased Additional Tier 1 (AT-1) bonds issued by Credit Suisse, after the court examined the claims and evidence.The bank said the Bahrain court had also rejected five other similar matters involving investors in Credit Suisse AT-1 bonds between July and August 2026. In all seven cases, the court rejected the allegations made against the bank and directed the investors to bear the proceeding costs.The cases stem from investments in Credit Suisse AT-1 bonds, securities that carry higher risks than conventional debt instruments because of their loss-absorbing features. AT-1 bonds are perpetual instruments and do not have a fixed maturity. Depending on the financial condition of the issuing bank and applicable regulatory triggers, they can be written down or converted into equity.The Credit Suisse AT-1 bonds became the centre of a global investor controversy in 2023 after Swiss authorities ordered their complete write-down as part of the takeover of Credit Suisse by UBS. About $17 billion of AT-1 bonds were wiped out, an outcome that attracted particular attention because Credit Suisse shareholders were set to receive UBS stock.Allegations rejected by the Bahrain courtAccording to HDFC Bank, the seven investors had alleged gross negligence, intentional misrepresentation, incorrect customer classification, non-disclosure of product features and characteristics, misuse of financial leverage and violation of product suitability principles in connection with their investments.The bank said the court rejected these allegations after finding that the investors had failed to place sufficient admissible evidence before it to establish the claims against HDFC Bank or demonstrate that they had suffered a loss attributable to the bank. The orders come against the backdrop of a wider dispute over the sale of Credit Suisse AT-1 bonds to investors through HDFC Bank’s overseas operations.HDFC Bank had earlier taken action against three executives over their alleged involvement in the mis-selling of Credit Suisse AT-1 bonds. The bank had said that it identified certain gaps in client-onboarding requirements at its Dubai International Financial Centre (DIFC) branch in the UAE and had completed a detailed review.Story continues below this adIn April, disciplinary action had subsequently been taken against 15 executives in connection with the matter. Investors had alleged, among other things, that the bank’s officials inflated income details of some non-resident Indian clients to enable them to qualify for AT-1 bond investments.NCDRC had dismissed complaints in MarchThe Bahrain court’s decisions follow a favourable outcome for HDFC Bank in India. In March 2026, the National Consumer Disputes Redressal Commission (NCDRC) had dismissed complaints filed by investors in the Credit Suisse AT-1 bonds against the bank.HDFC Bank said the NCDRC had held that the bank was acting as a facilitator, and that the investors retained autonomy over whether to make the investments. According to the bank, the commission also found that the investors had voluntarily chosen to invest after understanding the nature of the investments and approached the bank after the investments failed to deliver their expected returns.The bank has cited the Bahrain and Indian orders as evidence of what it described as consistent success in defending claims relating to the Credit Suisse AT-1 investments.Story continues below this adThe disputes also highlight the unusual risks associated with AT-1 securities. The Indian Express had reported in 2023 that the Credit Suisse write-down was the largest such wipeout in Europe’s AT-1 market and raised concerns about the potential impact on the pricing and issuance of such instruments globally.Bank says it will defend ‘unsubstantiated claims’HDFC Bank said it would continue to stand with its customers where required, but maintained that it could not be treated as an underwriter of investments made by customers based on their own judgment. The bank said it was prepared to defend itself rigorously against what it described as unsubstantiated claims.The issue remains key for investors and banks because AT-1 instruments sit at the riskier end of the debt spectrum. Their higher returns are accompanied by the possibility of substantial losses when a bank comes under financial stress. The Credit Suisse episode, in which AT-1 bonds were written down to zero, underscored that risk for investors globally.For HDFC Bank, the latest Bahrain orders add to the March NCDRC outcome, even as the broader controversy has already prompted internal disciplinary action and scrutiny of client onboarding and sales practices at its overseas operations.