A woman walks past a signboard of Bank of Baroda outside their branch office in New Delhi
Bank of Baroda (BoB) has entered into a huge out-of-court settlement with the joint administrators of the collapsed UAE-based NMC Group, paying $600 million (approximately ₹5,700 crore) in a bid to avoid prolonged litigation, uncertainty and associated costs.
The public sector bank’s stock closed at ₹260.15 apiece, down 4.18 per cent (or by ₹11.35) on the BSE on Thursday. The NMC Group was put under administration in 2020 after investigators uncovered billions of dollars of undisclosed debt and evidence of alleged fraud. This was one of the biggest corporate scandals in the Gulf.
Incidentally, NMC Group’s founder BR Shetty was conferred Padma Shri, India’s fourth highest civilian award, by the then UPA government in 2009. BoB, in a regulatory filing, said the case involved proceedings under Abu Dhabi Global Market (ADGM) Court of First Instance and UK insolvency law and UAE civil law, in relation to NMC Health PLC, NMC Holding Ltd and NMC Healthcare Ltd.
claims settled
Bank of Baroda agreed to pay to settle claims brought by the administrators of the collapsed NMC group. The administrators alleged that certain financing and lending arrangements involving the bank helped facilitate or failed to detect activities that concealed NMC’s true financial position. Bank of Baroda denied those allegations, but chose to settle the litigation without admitting liability.
The bank observed that NMC Health PLC, NMC Healthcare Ltd, NMC Holding Ltd and their respective joint administrators have resolved the claims between them and BoB in consideration for payment $600 million, pursuant to a settlement agreement.
“All claims, causes of action 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. Pursuant to the settlement agreement, the ADGM have been discontinued. The English proceedings are in the process of being discontinued.
“The above settlement is to bring the disputes to conclusion thereby avoiding prolonged litigation, uncertainty and associated cost,” said BoB. Settlement ends claims against the bank, said sources. We were looking for closure. After years of litigation linked to the NMC collapse, a negotiated settlement offered certainty and reduced legal risks, whereas continuing the fight in Abu Dhabi could have meant more years of costly and unpredictable court proceedings.”
Published on July 2, 2026
