State-owned Bank of Baroda has paid $600 million (about ₹5,700 crore) in an out-of-court settlement to resolve litigation linked to the collapse of UAE-based healthcare provider NMC Health, the lender said in an exchange filing on Thursday, according to livemint.com. The payment was completed by the bank's Abu Dhabi branch under a settlement agreement with the joint administrators of NMC Health PLC, NMC Healthcare Ltd, and NMC Holding Ltd.
The settlement resolves all claims between the parties without any admission of liability or wrongdoing by Bank of Baroda, the filing stated. The terms of the agreement beyond the settlement amount remain confidential. The litigation had been ongoing for several years, and the resolution marks an end to the dispute involving the bank and the collapsed healthcare provider.
This settlement is significant given the scale of the litigation and the impact on Bank of Baroda's financials. The $600 million payout is one of the largest settlements involving an Indian state-owned bank in overseas litigation. The bank’s shares fell over 4.3% on the National Stock Exchange following the announcement, reflecting investor reaction to the settlement cost and its implications.
Bank of Baroda's shares closed more than 4.3% lower on the National Stock Exchange on the day of the announcement, highlighting market response to the settlement news, as reported by livemint.com.