Why Bank of Baroda shares tumbled over 5% today in late deals

Shares of Bank of Baroda (BoB) recorded a sharp decline in Thursday's fag-end trade, sliding 5.08 per cent to hit a low of Rs 257.70.

The decline came after the state-run lender informed stock exchanges that it had entered into an out-of-court settlement with the joint administrators of NMC Health PLC, NMC Healthcare Ltd and NMC Holding Ltd, with the payment being settled by its Abu Dhabi Branch.

BoB noted that the case involved proceedings under ADGM and UK insolvency law, and UAE civil law in relation to NMC Health, NMC Holding and NMC Healthcare. The trial in the ADGM proceedings commenced on March 23, 2026. The English proceedings were stayed pending the outcome of the ADGM proceedings, it added.

Sharing settlement details, the lender said, "NMC Health, NMC Healthcare, NMC Holding, and their respective Joint Administrators have resolved the claims between them and the Bank of Baroda in consideration for, inter alia, payment by Bank of Baroda of $600 million (around Rs 5,700 crore), pursuant to a settlement agreement. All claims, causes of action, etc. between them have been resolved without admission of liability or wrongdoing. The settlement agreement and its terms otherwise remain confidential. The liability of the bank in these proceedings is limited to this sum."

It also said, "Pursuant to the settlement agreement, the ADGM have been discontinued. The English Proceedings are in the process of being discontinued."

Separately, Bank of Baroda said its global business rose 15.46 per cent year-on-year (YoY) to Rs 30.51 lakh crore as of June 30, 2026.

The lender's global advances increased 17.42 per cent YoY to Rs 14.17 lakh crore, while global deposits grew 13.81 per cent YoY to Rs 16.34 lakh crore during the same period.

Meanwhile, Anand Rathi Share and Stock Brokers stated that India's banking sector continues to show healthy trends, with credit growth accelerating, asset quality remaining stable, and return ratios holding up. It highlighted that system credit growth rose 17.7 per cent year-on-year (YoY) in May 2026, marking the ninth straight month of acceleration, with public sector banks (PSBs) outpacing private peers.

BoB is one of Anand Rathi's top picks. The brokerage has assigned a 'Buy' rating on the stock with a target price of Rs 329.