Bank of Baroda settles NMC group dispute for Rs 5,700 crore, ends multi-jurisdiction litigation
Bank of Baroda (BoB) has paid $600 million (approximately Rs 5,700 crore) to the joint administrators of the UAE-based NMC group of companies, settling long-standing insolvency-related disputes that spanned multiple jurisdictions. The settlement, announced on Thursday, brings to a close a series of legal proceedings in Abu Dhabi, England, and elsewhere.
Shares of the Mumbai-based public sector lender fell 4.18% to Rs 260.15 on the Bombay Stock Exchange following the announcement.
NMC Health, once listed in London, collapsed in 2020 after it revealed more than $4 billion in previously undisclosed debt, causing heavy losses for several UAE banks and other lenders. Bank of Baroda had extended a $250 million loan to NMC and its founder, B.R. Shetty, who later withdrew from providing collateral.
The joint administrators alleged that Bank of Baroda facilitated financing arrangements by processing or extending credit based on fictitious invoices and undisclosed borrowings, thereby enabling the company’s management to conceal its true financial position. The bank denied these allegations in court.
As a result of the settlement, proceedings before the Abu Dhabi Global Market (ADGM) courts have been formally discontinued. NMC Health PLC, NMC Healthcare Ltd, NMC Holding Ltd, and their joint administrators have resolved all claims and disputes with Bank of Baroda.
In an exchange filing, Bank of Baroda stated that the agreement resolves all claims, causes of action, and related matters without any admission of liability or wrongdoing by either side. The terms of the settlement are confidential, and the payment was made through the bank’s Abu Dhabi branch.
The bank clarified that its liability in the proceedings is limited to the agreed settlement amount, bringing certainty to one of the most closely watched insolvency disputes arising from the NMC group’s collapse. Related proceedings before English courts are also being discontinued, effectively ending litigation across both jurisdictions.
NMC Health was founded by India-born B.R. Shetty. The company entered administration in 2020 after investigators uncovered billions of dollars in hidden debt and alleged accounting fraud. The group had $6.6 billion in debt at the time. Administrators sought to recover losses from parties they believed were involved.
The collapse was attributed not only to weak hospital operations but also to undisclosed borrowings, misleading financial reporting, governance failures, and a sudden loss of lender confidence. NMC Health had expanded rapidly through acquisitions and was added to the FTSE 100 index in 2017, with a peak valuation of approximately £8.6 billion.
The legal dispute involved complex issues under ADGM law, UK insolvency law, and UAE civil law, reflecting the multinational nature of the group’s operations. The ADGM proceedings had advanced to trial, which began on March 23, 2026, while English proceedings had been stayed pending the outcome of the ADGM case.
