Bank of Baroda pays $600 million to settle NMC case

Dubai: Bank of Baroda has agreed to pay $600 million (approximately Dh2.2 billion) to settle litigation linked to the collapse of UAE healthcare giant NMC Health, bringing an end to years of legal proceedings against the Indian lender in Abu Dhabi and London.

The settlement was confirmed separately by the bank in a stock exchange filing and by law firm Quinn Emanuel, which represented the Joint Administrators of NMC Health — Richard Fleming and Benjamin Cairns of Alvarez & Marsal.

In a disclosure to the National Stock Exchange of India and the Bombay Stock Exchange, Bank of Baroda said it had entered into an out-of-court settlement with the joint administrators of NMC Health PLC, NMC Healthcare Ltd and NMC Holding Ltd. The payment was made through the bank's Abu Dhabi branch.

According to the filing, the settlement relates to insolvency and civil proceedings before the Abu Dhabi Global Market (ADGM) Court of First Instance and the High Court of Justice of England and Wales.

The ADGM trial had begun on March 23 this year, while the English proceedings had been stayed pending the outcome of the Abu Dhabi case.

Case against former NMC leaders continue

Bank of Baroda said it agreed to pay $600 million (approximately Dh2.2 billion) under the settlement agreement.

The bank said all claims between the parties have been resolved without any admission of liability or wrongdoing, adding that the remaining terms of the agreement are confidential. It also said its liability in the proceedings is limited to the settlement amount.

The ADGM proceedings have been discontinued, while the English proceedings are in the process of being discontinued.

Quinn Emanuel said the $600 million payment had now been secured for its clients, the Joint Administrators of NMC Health.

However, the settlement does not end the wider litigation surrounding the collapse of NMC Health.

The law firm said it continues to act against B. R. Shetty, the founder of NMC Health, and Prasanth Manghat, the company's former chief executive, in the same ADGM and London proceedings.

According to a statement Quinn Emanuel shared with Gulf News, those claims seek recovery for creditor losses exceeding $5 billion (around Dh18.4 billion) and include allegations of fraud linked to the collapse of the former FTSE 100-listed healthcare company.

The allegations centre on claims that billions of dollars in debt were concealed from the market. The cases against Dr Shetty and Manghat remain ongoing.

What led to this?

NMC Health was once the UAE's largest private healthcare provider before it entered administration in 2020 after the discovery of more than $4 billion in previously undisclosed debt.

The collapse became one of the Gulf's biggest corporate scandals. During the restructuring process, Alvarez & Marsal was appointed joint administrator and oversaw the company's rescue and restructuring.

The settlement comes as Bank of Baroda also reported continued growth across its business. In a separate regulatory filing on Thursday, the lender said its global business rose 15.46 per cent year-on-year to ₹30.51 trillion (about $356 billion or Dh1.31 trillion) as of June 30, 2026.

Global advances increased 17.42 per cent to ₹14.17 trillion (around $165 billion or Dh606 billion), while global deposits grew 13.81 per cent to ₹16.34 trillion (about $191 billion or Dh699 billion).

However, the bank's share tumbled 4.31 per cent to INR259.80 after the bank said that it has entered into an out-of-court settlement with the joint administrators of NMC Health PLC, NMC Healthcare Ltd and NMC Holding Ltd.