Bank of Baroda has agreed to pay $600 million (about ₹5,700 crore) to settle litigation linked to the collapse of UAE-based NMC Health
The settlement marks the ending of one of the largest cross-border disputes involving an Indian public sector bank
Reached without admission of wrongdoing, the confidential settlement halts proceedings in Abu Dhabi and England
Why Bank of Baroda Paid ₹5,700 Cr to Settle the NMC Health Case | Explained
The administrators alleged that Bank of Baroda's Abu Dhabi branch facilitated financing arrangements and banking transactions that allowed NMC and related entities to conceal their actual financial position
Bank of Baroda
Summary
Advertisement
State-owned Bank of Baroda (BoB) has agreed to pay $600 million (around ₹5,700 crore) to settle litigation linked to the collapse of UAE-based healthcare giant NMC Health, bringing an end to one of the biggest cross-border legal disputes involving an Indian public sector bank.
The settlement was reached without any admission of liability or wrongdoing and was intended to avoid prolonged litigation and associated costs, according to the bank's stock exchange filing. The payment resolves all claims against the lender in the case.
How did the dispute begin?
The legal battle traces its origins to the collapse of London-listed NMC Health in 2020 after short-seller Muddy Waters questioned the company's financial statements.
Subsequent investigations uncovered more than $4 billion in previously undisclosed debt, forcing the healthcare group into insolvency proceedings.
The joint administrators of NMC later initiated legal proceedings against several parties, including NMC founder BR Shetty, former chief executive Prasanth Manghat and Bank of Baroda, alleging they were responsible for losses suffered by the company.
Advertisement
Proceedings were filed before the Abu Dhabi Global Market (ADGM) Courts, while related proceedings in England were stayed pending the outcome of the Abu Dhabi case.
Why was Bank of Baroda involved?
The administrators alleged that Bank of Baroda's Abu Dhabi branch facilitated financing arrangements and banking transactions that allowed NMC and related entities to conceal their actual financial position.
They also claimed that certain banks failed to carry out adequate anti-money laundering (AML), know-your-customer (KYC) and due diligence checks, contributing to the continuation of the alleged fraud.
Bank of Baroda has consistently denied these allegations. The bank informed stock exchanges that the ADGM trial commenced on March 23, 2026.
Before the court could pronounce its judgment, it entered into a confidential out-of-court settlement under which its liability was capped at $600 million, while proceedings against the bank in Abu Dhabi and England were discontinued.
Advertisement
Why is the settlement significant?
The settlement stands in contrast to Bank of Baroda's FY26 annual report, where the lender had stated, based on legal advice, that it had a strong chance of successfully defending the case.
Consequently, it had classified the matter as a contingent liability rather than making any financial provision, as per a report by Mint.
While the $600 million payment is substantial, the settlement removes a major legal overhang surrounding the bank's overseas operations.
The payment will be distributed among NMC's creditors through the administration process, while legal proceedings against other former promoters, executives and related parties continue separately, as per The Hindu.