Bank of Baroda Settles NMC Healthcare Case for $600 Million (₹5,700 Cr)

Mumbai, July 2, 2026: In a major move to clear its legal ledger, Bank of Baroda (BoB) has officially ended its multi-year legal battle tied to the infamous NMC Healthcare corporate fraud case.

According to a regulatory filing submitted today to both the NSE and BSE, the public sector banking giant has entered into an out-of-court settlement agreement with the joint administrators of NMC Health PLC, NMC Healthcare Ltd, and NMC Holding Ltd.

To put this dispute to bed, Bank of Baroda's Abu Dhabi branch has settled a payment of $600 million (which translates to roughly ₹5,700 crore).

Where Did This Legal Drama Take Place?

The litigation was highly complex, spanning multiple global financial jurisdictions. It involved two massive legal fronts:

• The Abu Dhabi Front: Case numbers ADGMCFI-2022-299 & ADGMCFI-2020-020 before the Abu Dhabi Global Market (ADGM) Court of First Instance. The trial here had recently kicked off on March 23, 2026.

• The UK Front: Case number BL-2022-002097 before the High Court of Justice, England & Wales. These British proceedings were put on pause while waiting to see how the Abu Dhabi case played out.

The lawsuits pitted the joint administrators of the collapsed healthcare group against the controversial founder Dr. B.R. Shetty, former CEO Prasanth Manghat, and Bank of Baroda under local insolvency and civil laws.

The Terms of the Settlement

The multi-million dollar payout effectively closes the chapter on Bank of Baroda’s exposure to the NMC collapse. Here are the key takeaways from the settlement:

• No Admission of Fault: All claims, cross-claims, and legal actions between the administrators and the bank have been resolved without any admission of liability or corporate wrongdoing.

• Strict Confidentiality: Aside from the financial payout figures, the deeper terms and inner details of the settlement agreement remain strictly confidential.

• Case Dismissals: Following the signing of the agreement, the Abu Dhabi court proceedings have been formally discontinued, and the UK High Court case is currently in the process of being dropped.

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Why Did the Bank Agree to This Payout?

For Bank of Baroda, paying ₹5,700 crore is an expensive resolution, but leadership viewed it as a necessary step. The bank explicitly stated that the settlement was made to bring the running disputes to a definitive conclusion.

By choosing to settle out of court, the bank effectively avoids prolonged litigation, cuts down heavily on ongoing international legal costs, and completely removes a dark cloud of financial uncertainty that has been hanging over its overseas operations for years.

Source: Company filing with stock exchanges (BSE/NSE) dated July 02, 2026.