BT Explainer: Why Bank of Baroda paid $600 mn to end a years-long NMC Health dispute
Shares of Bank of Baroda have fallen more than 7% in two sessions after the settlement news with NMC Health, once one of the UAE's largest private healthcare providers founded by NRI businessman BR Shetty
- Jul 3, 2026,
- Updated Jul 3, 2026 2:41 PM IST
Bank of Baroda shares have come under sharp selling pressure over the past two trading sessions, falling more than 7%. The stock declined over 4% on July 3 and slipped another 3% on July 4 after the lender disclosed an out-of-court settlement with the joint administrators of NMC Health PLC, NMC Healthcare Ltd and NMC Holding.
In a filing on July 2, 2026, the country's second-largest public sector bank said it had agreed to pay $600 million (around Rs 5,700 crore) to settle the case. The agreement ends a years-long legal dispute linked to fraud and the cross-border insolvency of the NMC Group that had been ongoing for a few years now.
What was the litigation about?
The litigation stemmed from the collapse of NMC Health, once one of the UAE's largest private healthcare providers, after a forensic audit in 2020 uncovered billions of dollars in previously undisclosed debt. The company, founded by NRI businessman B.R. Shetty, subsequently entered insolvency, triggering a series of legal proceedings across multiple jurisdictions.
As part of efforts to recover money for creditors, insolvency proceedings were launched before the Abu Dhabi Global Market Court and the High Court of Justice of England and Wales, covering NMC Health and several group companies. The dispute involving Bank of Baroda was linked to these fraud and cross-border insolvency proceedings, which have now been resolved through the $600 million settlement.
Bank of Baroda was among the major lenders to have had a large exposure to NMC Health’s operations in the UAE. It was alleged by the administrator in the court that Bank of Baroda facilitated fictitious financing arrangements, which helped conceal NMC’s true debt position, according to Bar and Bench.
The administrators of entities within the NMC Group have filed legal proceedings against Shetty, Prashant Manghat (former chief executive of NMC Health), and Bank of Baroda, before the Abu Dhabi Global Market Court of First Instance and the England & Wales High Court arising out of their insolvency, Bank of Baroda said in its annual report published late in May 2026.
“The insolvency is said to have arisen due to discovery of fraud perpetrated by shareholders, senior management and employees of the group between the years 2012-2020,” the annual report said.
Meanwhile, the trial before the Abu Dhabi Global Market (ADGM) court commenced on March23, 2026. However, the parallel proceedings before the High Court of England and Wales were stayed pending the outcome of the ADGM case.
“The ADGM proceedings include insolvency and civil claims under ADGM and UAE law in relation to the fraud and losses occasioned on account of such alleged fraud. The bank denies all allegations made against it and has filed a robust defence (on facts and law) in both proceedings,” Bank of Baroda had said.
Why did Bank of Baroda opt for a settlement?
Bank of Baroda said on July 2, 2026, that the settlement was done to bring the disputes to conclusion thereby avoiding prolonged litigation, uncertainty and associated cost.
What was the settlement?
Under the settlement agreement, Bank of Baroda will pay $600 million to resolve all claims brought against it by NMC Health PLC, NMC Healthcare Ltd, NMC Holding and their respective joint administrators.
Under the agreement, all claims and causes of action between the parties have been fully resolved without any admission of liability or wrongdoing by Bank of Baroda. The lender added that the terms of the settlement agreement, apart from the disclosed payment amount, will remain confidential.
The liability of the bank in the matter is limited to the agreed $600 million. Following the agreement, the proceedings before the ADGM have been discontinued, while the proceedings before the English Proceedings are in the process of being discontinued. The settlement amount was paid through the bank's Abu Dhabi branch.
Bank of Baroda shares have come under sharp selling pressure over the past two trading sessions, falling more than 7%. The stock declined over 4% on July 3 and slipped another 3% on July 4 after the lender disclosed an out-of-court settlement with the joint administrators of NMC Health PLC, NMC Healthcare Ltd and NMC Holding.
In a filing on July 2, 2026, the country's second-largest public sector bank said it had agreed to pay $600 million (around Rs 5,700 crore) to settle the case. The agreement ends a years-long legal dispute linked to fraud and the cross-border insolvency of the NMC Group that had been ongoing for a few years now.
What was the litigation about?
The litigation stemmed from the collapse of NMC Health, once one of the UAE's largest private healthcare providers, after a forensic audit in 2020 uncovered billions of dollars in previously undisclosed debt. The company, founded by NRI businessman B.R. Shetty, subsequently entered insolvency, triggering a series of legal proceedings across multiple jurisdictions.
As part of efforts to recover money for creditors, insolvency proceedings were launched before the Abu Dhabi Global Market Court and the High Court of Justice of England and Wales, covering NMC Health and several group companies. The dispute involving Bank of Baroda was linked to these fraud and cross-border insolvency proceedings, which have now been resolved through the $600 million settlement.
Bank of Baroda was among the major lenders to have had a large exposure to NMC Health’s operations in the UAE. It was alleged by the administrator in the court that Bank of Baroda facilitated fictitious financing arrangements, which helped conceal NMC’s true debt position, according to Bar and Bench.
The administrators of entities within the NMC Group have filed legal proceedings against Shetty, Prashant Manghat (former chief executive of NMC Health), and Bank of Baroda, before the Abu Dhabi Global Market Court of First Instance and the England & Wales High Court arising out of their insolvency, Bank of Baroda said in its annual report published late in May 2026.
“The insolvency is said to have arisen due to discovery of fraud perpetrated by shareholders, senior management and employees of the group between the years 2012-2020,” the annual report said.
Meanwhile, the trial before the Abu Dhabi Global Market (ADGM) court commenced on March23, 2026. However, the parallel proceedings before the High Court of England and Wales were stayed pending the outcome of the ADGM case.
“The ADGM proceedings include insolvency and civil claims under ADGM and UAE law in relation to the fraud and losses occasioned on account of such alleged fraud. The bank denies all allegations made against it and has filed a robust defence (on facts and law) in both proceedings,” Bank of Baroda had said.
Why did Bank of Baroda opt for a settlement?
Bank of Baroda said on July 2, 2026, that the settlement was done to bring the disputes to conclusion thereby avoiding prolonged litigation, uncertainty and associated cost.
What was the settlement?
Under the settlement agreement, Bank of Baroda will pay $600 million to resolve all claims brought against it by NMC Health PLC, NMC Healthcare Ltd, NMC Holding and their respective joint administrators.
Under the agreement, all claims and causes of action between the parties have been fully resolved without any admission of liability or wrongdoing by Bank of Baroda. The lender added that the terms of the settlement agreement, apart from the disclosed payment amount, will remain confidential.
The liability of the bank in the matter is limited to the agreed $600 million. Following the agreement, the proceedings before the ADGM have been discontinued, while the proceedings before the English Proceedings are in the process of being discontinued. The settlement amount was paid through the bank's Abu Dhabi branch.