Bank Of Baroda To Pay $600 Million In NMC Health Insolvency Settlement

Bank of Baroda has reached a settlement of $600 million, equivalent to approximately ₹5,700 crore, with the joint administrators of NMC Health and its affiliates to resolve claims arising from the UAE-based healthcare company's insolvency.

The bank disclosed the settlement to stock exchanges on 2 July 2026 without revealing specific terms of the agreement. Bank of Baroda shares fell 4% to ₹260 following the announcement.

At 12:22 PM on 3 July it was trading down 3.29% at ₹251.70.

Why Bank Of Baroda Was Dragged In

NMC Health collapsed in 2020 after the discovery of more than $4 billion in hidden debt, one of the largest corporate frauds in the UAE. Global insolvency resolution firm Alvarez and Marsal, appointed as administrator, subsequently made Bank of Baroda a party to the recovery proceedings.

The administrators alleged that the bank was grossly negligent in its handling of NMC-related accounts. Specifically, the claims covered failures to follow proper anti-money laundering and know-your-customer procedures, continued processing of payments the bank allegedly knew were fraudulent, and inadequate due diligence on accounts used as conduits for pass-through payments via fake invoices.

People familiar with the matter said the bank's role in allowing these transactions, without flagging them to other creditors, caused wider losses across the group's lender base. Other creditors to NMC included Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank and Emirates NBD.

The Numbers In Context

The $600 million settlement is more than double the $253 million exposure Bank of Baroda had disclosed when NMC first went into insolvency in 2020. To put the scale of the payout in perspective, the settlement amount is nearly equivalent to the ₹5,616 crore net profit the bank reported in Q4 FY26.

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Where The Legal Case Stood

Bank of Baroda was challenging the allegations both in the Abu Dhabi Global Market court and the England and Wales High Court. The bank’s annual report released in late May said the Abu Dhabi Global Market (ADGM) trial started on 23 March 2026, with the England proceedings stayed until the outcome.

The bank had mounted a strong defence in both forums, denying all allegations. The settlement reflects a choice to resolve the matter rather than pursue lengthy litigation.