Bank of Baroda records ₹5,680 crore NMC claim settlement

Bank of Baroda paid USD 600 million, stated as equivalent to Rs 5,680 crore, on 1 July 2026 to resolve claims involving NMC Health PLC, NMC Healthcare LTD, NMC Holding LTD and their joint administrators. The Bank charged the amount to profit and loss for the half year ended 30 September 2026, after which the named Abu Dhabi and England and Wales proceedings were discontinued.

What did the Bank settle with NMC?

The Bank settled claims with NMC Health PLC, NMC Healthcare LTD, NMC Holding LTD and their respective joint administrators for consideration that included a USD 600 million payment. The settlement agreement was dated 1 July 2026, and the Bank said the full payment, equivalent to Rs 5,680 crore, was made on that date.

The administrators of entities within the NMC Group had brought proceedings against Dr. BR Shetty, Mr. Prashant Manghat and the Bank. The filing says the claims arose from the NMC Group’s insolvency, which was said to have followed the discovery of fraud perpetrated by shareholders, senior management and employees between 2012 and 2020.

The disclosure does not provide a breakdown of any non-cash or other terms referred to in the settlement agreement. It identifies the payment of USD 600 million as consideration for resolving the claims between the NMC entities, their joint administrators and the Bank, with the payment completed on 1 July 2026.

How did the Bank record the settlement payment?

The Bank debited the Rs 5,680 crore settlement amount to its profit and loss account for the half year ended 30 September 2026. It also stated that its liability in the proceedings was limited to USD 600 million, the sum paid on 1 July 2026.

The consolidated results separately reported exceptional items of Rs 5,680.23 crore for the half year ended 30 September 2026. Consolidated net profit was Rs 8,520.57 crore, compared with Rs 8,602.72 crore in the half year ended 30 September 2025, while operating profit before provisions and contingencies increased by Rs 6,179.70 crore.

The comparison shows that operating profit before provisions and contingencies rose despite net profit being Rs 82.15 crore below the previous-year half. The filing specifically says the settlement was charged to profit and loss, but it does not provide a split of that charge among Treasury Operations, Wholesale Banking, Retail Banking and Other Banking Operations.

Which court proceedings did the Bank discontinue?

The Bank said proceedings against it in the Abu Dhabi Global Market Court of First Instance and the High Court of Justice of England and Wales were discontinued. The discontinuance followed the 1 July 2026 settlement agreement and the USD 600 million payment made on the same date.

The Abu Dhabi Global Market, or ADGM, proceeding and the England and Wales proceeding were the two courts expressly named in the half-year disclosure. The Bank’s 30 September 2026 filing does not identify a further hearing date or another payment obligation for those specified proceedings.

The settlement disclosure is confined to claims involving the named NMC entities and their joint administrators. It does not state that the agreement covers matters beyond the proceedings in the ADGM Court of First Instance and the High Court of Justice of England and Wales.

Did the Bank admit liability or wrongdoing?

The Bank did not admit liability or wrongdoing in resolving the NMC-related claims. Its disclosure says the claims were resolved and the proceedings discontinued without an admission, while the stated liability was limited to USD 600 million, or Rs 5,680 crore.

This means the payment and the discontinuance of the two court proceedings did not constitute an acceptance by the Bank of the alleged conduct described in the filing. The disclosure attributes the alleged fraud to shareholders, senior management and employees of the NMC Group between 2012 and 2020, rather than setting out a finding against the Bank.

The Bank paid the stated limit in full on 1 July 2026 and recorded the charge in the half year ended 30 September 2026. The document does not provide additional findings on the allegations made in the underlying proceedings or allocate the settlement charge to a business segment.

What did the Bank’s auditors report on the settlement?

The Bank’s joint auditors highlighted the settlement as an emphasis-of-matter item in their review report dated 30 October 2026. They noted the USD 600 million payment, equivalent to Rs 5,680 crore, its charge to profit and loss for the half year ended 30 September 2026, and the discontinuance of the two court proceedings.

The auditors said their conclusion was not modified in respect of the settlement matter. Their report reviewed unaudited standalone financial results for the quarter and half year ended 30 September 2026 and stated that a review provides moderate assurance, rather than an audit opinion.

The review incorporated returns from 20 domestic branches, one Specialised Integrated Treasury branch, one International Banking Unit in GIFT City and 17 foreign branches. The auditors also relied on reports from other auditors for the 17 foreign branches, which recorded half-year revenue of Rs 7,272.86 crore for the period ended 30 September 2026.

Conclusion

The Bank resolved the specified NMC-related claims through a USD 600 million payment, stated as Rs 5,680 crore, and recorded the cost in first-half profit and loss for the period ended 30 September 2026. The agreement ended the identified ADGM and England and Wales proceedings without an admission of liability or wrongdoing, while the auditors did not modify their review conclusion on the matter.

The filing identifies no further settlement payment, recovery target or scheduled court event relating to the two discontinued proceedings. The next financial disclosures will show whether the Bank provides any further detail on the one-time charge or on matters connected with the completed 1 July 2026 settlement.