The bank has settled its part of the NMC case, while the $5 billion fraud proceedings continue against former executives.
Bank of Baroda has agreed to pay $600 million (approximately ₹5,150 crore or Dh2.2 billion) to settle litigation connected to the collapse of UAE-based healthcare giant NMC Health, closing a significant chapter in one of the Gulf region’s largest corporate scandals.
The settlement resolves all legal claims between the Indian public sector lender and the joint administrators of NMC Health, ending proceedings that had been underway in both the Abu Dhabi Global Market (ADGM) Court and the High Court of Justice of England and Wales.
However, the broader legal battle surrounding the collapse of NMC Health continues, with multi-billion-dollar fraud claims still pending against the company’s former leadership.
Bank of Baroda Ends Litigation Without Admitting Liability
Bank of Baroda confirmed the settlement through regulatory filings with the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
According to the bank, the agreement was reached with the joint administrators of NMC Health PLC, NMC Healthcare Ltd., and NMC Holding Ltd. The payment will be made through the bank’s Abu Dhabi branch.
Importantly, Bank of Baroda stated that the settlement does not constitute an admission of liability or wrongdoing. Instead, it represents an out-of-court resolution that fully settles all claims between the parties.
The bank also confirmed that its total financial exposure in the matter is limited to the agreed settlement amount, while the remaining terms of the agreement remain confidential.
Legal Proceedings in Abu Dhabi and London Come to an End
The litigation had been progressing simultaneously in multiple jurisdictions.
The ADGM Court trial began on March 23, 2026, while related proceedings before the English High Court had been paused pending developments in Abu Dhabi.
Following the settlement, both legal proceedings involving Bank of Baroda are being discontinued.
The joint administrators were represented by international law firm Quinn Emanuel Urquhart & Sullivan, which confirmed that the agreed payment has now been secured for creditors.
Claims Against Former NMC Executives Continue
Although Bank of Baroda has resolved its role in the dispute, the wider litigation surrounding NMC Health remains active.
Quinn Emanuel confirmed that it continues to represent the joint administrators in legal proceedings against NMC founder Dr. B. R. Shetty and former Chief Executive Officer Prasanth Manghat.
Those proceedings seek to recover more than $5 billion (approximately Dh18.4 billion) for creditors.
The cases include allegations of fraud linked to the collapse of NMC Health, particularly claims that billions of dollars in borrowings were concealed from lenders and investors over several years.
The allegations remain before the courts, and the proceedings against the former executives are ongoing.
The Collapse of NMC Health
NMC Health was once regarded as one of the Middle East’s biggest healthcare success stories.
Founded by Dr. B. R. Shetty, the company grew into the UAE’s largest private healthcare provider and became the first Gulf healthcare business to join the FTSE 100 Index on the London Stock Exchange.
Its rapid expansion came to an abrupt halt in 2020, when investigations uncovered more than $4 billion in previously undisclosed debt.
The discovery triggered one of the largest corporate collapses in the Gulf region, forcing the company into administration.
Global restructuring firm Alvarez & Marsal was appointed joint administrator and has since overseen the restructuring process while pursuing recovery actions against various parties connected to the company’s collapse.
Financial Performance Remains Strong
The settlement announcement coincided with Bank of Baroda’s latest business update, which highlighted continued growth across its global operations.
As of June 30, 2026, the bank reported:
- Global business: ₹30.51 trillion, up 15.46% year-on-year.
- Global advances: ₹14.17 trillion, up 17.42%.
- Global deposits: ₹16.34 trillion, rising 13.81% compared with the previous year.
Despite these operational gains, investor sentiment remained cautious following the settlement announcement.
Bank of Baroda shares fell 4.31%, closing at ₹259.80, as markets assessed the financial impact of the $600 million payment.
A Significant Milestone in a Long-Running Case
The settlement removes a major legal uncertainty for Bank of Baroda, allowing the lender to close one of its most significant international litigation matters without admitting wrongdoing.
For the administrators of NMC Health, the agreement represents another step toward recovering funds for creditors following the healthcare group’s collapse.
At the same time, the broader legal battle continues. The multi-billion-dollar claims against NMC’s former executives remain before the courts, meaning one of the Gulf’s largest corporate fraud cases is still far from reaching its conclusion.
Source: Gulf News
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A Bank of Baroda signboard is seen outside one of the lender’s branches in Mumbai, India. The bank has agreed to pay $600 million to settle litigation linked to the collapse of UAE healthcare company NMC Health.
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