Bank of Baroda Falls 5% on Rs 5,700 Cr NMC Settlement

Shares of Bank of Baroda fell 5% on Thursday, to a day low of Rs 257.70, after agreeing to pay Rs 5,700 crore to settle NMC Health litigation.

NMC Health was once one of the largest private healthcare providers in the UAE, before it collapsed into insolvency in 2020.

Bank of Baroda, along with several other lenders, got dragged into years of litigation over its exposure to the group. The case was being fought on two fronts, the Abu Dhabi Global Market Court and the High Court in England.

The bank decided against letting it run any longer. In its exchange filing, Bank of Baroda said the settlement closes out all claims between the two sides, with neither party admitting to any liability or wrongdoing.

Beyond the headline figure, the actual terms of the deal stay confidential. The payment itself has already gone through, made via the bank’s Abu Dhabi branch.

Bank of Baroda was clear that its total liability in the matter is limited to this amount and nothing more.

With the payment made, the Abu Dhabi proceedings have been discontinued, and the English court case is being withdrawn as well.

The bank’s own explanation was fairly straightforward: settling now avoids years of further litigation, the uncertainty around it, and legal costs that would have kept adding up regardless of the outcome.

By the end of the session, the stock closed at Rs 260.15 on the BSE, down 4.18% from Wednesday’s close of Rs 271.50.

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