Bank of Baroda has agreed to pay $600 million to settle litigation related to the collapse of UAE-based healthcare company NMC Health, bringing an end to years of legal proceedings against the Indian lender in Abu Dhabi and London.
The settlement was confirmed by the bank in a regulatory filing, stating that it had entered into an out-of-court agreement with the Joint Administrators of NMC Health PLC, NMC Healthcare Ltd, and NMC Holding Ltd. The payment has been made through the bank's Abu Dhabi branch.
The agreement resolves insolvency and civil proceedings before the Abu Dhabi Global Market (ADGM) Court of First Instance and the High Court of Justice of England and Wales. The ADGM trial had commenced earlier this year, while the English proceedings had been placed on hold pending the outcome of the Abu Dhabi case.
According to the bank, the settlement resolves all claims between the parties without any admission of liability or wrongdoing. It also clarified that its financial responsibility is limited to the agreed settlement amount, while the remaining terms of the agreement remain confidential. Following the settlement, proceedings in Abu Dhabi have been discontinued, and the related case in England is also being withdrawn.
Despite the settlement, the broader legal battle surrounding NMC Health remains unresolved. The Joint Administrators continue to pursue legal action against NMC Health founder B.R. Shetty and former Chief Executive Prasanth Manghat, seeking recovery of more than $5 billion on behalf of creditors.
The ongoing proceedings include allegations that billions of dollars in debt were concealed before the company's collapse. Those claims remain before the courts and are yet to be decided.
NMC Health, once the UAE's largest private healthcare provider and a member of the FTSE 100 index, entered administration in 2020 after more than $4 billion in previously undisclosed debt was uncovered. The collapse became one of the largest corporate failures in the Gulf region, leading to a major restructuring process under the supervision of Joint Administrators.
Separately, Bank of Baroda reported strong operational performance for the quarter ended June 30, 2026. The lender said its global business grew 15.46% year-on-year to ₹30.51 trillion, while global advances increased 17.42% and deposits rose 13.81% compared with the same period last year.
However, investor sentiment remained cautious following the settlement announcement. Shares of Bank of Baroda fell 4.31% to close at ₹259.80, reflecting market reaction to the one-time settlement payment.
The settlement removes a significant legal overhang for Bank of Baroda, while the larger fraud litigation linked to the collapse of NMC Health continues against the company's former leadership.
