Bank of Baroda settles NMC Health dispute with ₹5,700 crore out-of-court payment

Bank of Baroda settled a $600 million dispute with NMC Healthcare administrators, ending a protracted legal battle. This significant payout, wiping out a quarter of its projected profit, raises serious questions about the bank's governance and disclosure practices. The settlement, reached without admitting fault, highlights a perceived leniency in regulatory oversight for state-owned banks compared to private institutions, prompting calls for more equitable enforcement.

Bank of Baroda, the second largest Public Sector Bank on Thursday (July 2, 2026) informed stock exchanges that it had paid $600 million (about ₹5,700 crore) to settle litigation initiated by the administrators of NMC Health Plc, NMC Healthcare Ltd and NMC Holding Ltd. This ends one of the largest cross-border banking disputes involving an Indian lender.

In 2020 Abu Dhabi’s largest healthcare provider NMC Healthcare founded by India-born entrepreneur B.R. Shetty collapsed after undisclosed debt running into billions of dollars was reportedly uncovered

New Delhi: State-owned Bank of Baroda (BoB) on Thursday said it reached an out-of-court settlement with NMC Health PLC, NMC Healthcare Ltd, and NMC Holding Ltd, with USD 600 million (about Rs 5,700 crore) paid through its Abu Dhabi Branch.The case involved proceedings under Abu Dhabi Global Market (ADGM) and UK insolvency regulations, and the UAE civil law in relation to NMC Health PLC, NMC Holding Ltd and NMC Healthcare Ltd, BoB said in a regulatory filing.How To Save Capital Gains Tax On Sale Of House Property "NMC Health PLC, NMC Healthcare Ltd, NMC Holding Ltd, and their respective Joint Administrators, have resolved the claims between them and the Bank of Baroda in consideration for, inter alia, payment by Bank of Baroda of USD 600 million, pursuant to a settlement agreement," it said.All claims, causes of action, etc. between them have been resolved without admission of liability or wrongdoing, it said.The settlement agreement and its terms otherwise remain confidential, it said, adding that the liability of the bank in these proceedings is limited to this sum.₹116.72 Crore GST Demand Against LG Electronics India Dropped, Company Gets Major Relief "Pursuant to the settlement agreement, the ADGM have been discontinued. The English Proceedings are in the process of being discontinued," it said.Shares of BoB closed at Rs 260.15, down 4.18 per cent on the BSE.Meanwhile, in a separate filing, BoB said the bank registered a total credit growth of 17 per cent to Rs 14.17 lakh crore in the first quarter of FY 27.Gold Rebounds ₹3,000 To ₹1.47 Lakh Per 10 Grams As Weak US Dollar Lifts Bullion Demand The outstanding credit was Rs 12.07 lakh crore at the end of the June quarter of the previous fiscal, it said.The Mumbai-headquartered public sector lender reported a 14 per cent increase in total deposits to Rs 16.3 lakh crore in the reporting quarter against Rs 14.35 lakh crore at the end of the first quarter of the previous financial year.As a result, the total business (total credit and deposits) of the bank registered an increase of 15 per cent to Rs 30.5 lakh crore compared with Rs 26.42 lakh crore at the end of June 30, 2025. (Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)

Bank of Baroda has settled a major legal dispute, agreeing to pay $600 million to administrators of the collapsed NMC Health group. This out-of-court agreement concludes years of litigation concerning cross-border insolvency and alleged fraud following NMC's 2020 downfall. The payment will be distributed to creditors, with the bank's shares seeing a reaction to the news.

Bank of Baroda has agreed to a $600 million settlement with administrators of the insolvent NMC Health Plc. The bank faced allegations of gross negligence, failing to conduct proper due diligence, and allowing fraudulent transactions without adhering to anti-money laundering and KYC norms. This payout, significantly exceeding its reported exposure, aims to resolve claims from NMC Health and its affiliates, stemming from a fraud discovered between 2012-2020.