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Bank of Baroda has entered into an out-of-court settlement with the joint administrators of NMC Health PLC

ICICIdirect Research 03 Jul 2026 DISCLAIMER

News: As per the exchange filing, Bank of Baroda has entered into an out-of-court settlement with the joint administrators of NMC Health PLC, NMC Healthcare Ltd. and NMC Holding Ltd., resolving all claims related to insolvency and civil proceedings before the Abu Dhabi Global Market Court and the High Court of Justice of England & Wales. Under the settlement, the bank will pay US$600 million (approximately ₹5,700 crore) through its Abu Dhabi branch, with the settlement expressly made without any admission of liability or wrongdoing. Following the agreement, the ADGM proceedings have been discontinued, while the English proceedings are in the process of being withdrawn. The bank stated that the settlement brings the long-pending litigation to a close, eliminating prolonged legal uncertainty and associated costs, with its liability in these proceedings limited to the agreed settlement amount.

View: This development remains a surprise for the investors with impact of the one-time payout being adjusted in valuation. However, clarity on any contingent provision remains watchful. Given uncertainty related to one-off impact, valuation could remain in a narrow range.

Impact: Negative

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