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Bank of Baroda shares declined more than 4% after the public sector lender announced an out-of-court settlement with the joint administrators of NMC Health PLC, NMC Healthcare Ltd, and NMC Holding Ltd, bringing an end to long-running legal proceedings in the Abu Dhabi Global Market (ADGM) Court and the High Court of Justice of England & Wales.

The bank disclosed the development in a regulatory filing under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As part of the settlement, Bank of Baroda’s Abu Dhabi Branch will pay US$600 million (approximately ₹5,700 crore). The bank stated that the settlement resolves all claims and causes of action brought by NMC Health PLC, NMC Healthcare Ltd, NMC Holding Ltd, and their respective joint administrators.

The dispute to insolvency and civil proceedings under ADGM and UK insolvency laws, along with UAE civil law. The ADGM trial had commenced on March 23, 2026while the proceedings before the High Court of Justice of England & Wales had been stayed pending the outcome of the ADGM case.

Bank of Baroda clarified that the settlement has been reached without any admission of liability or wrongdoing. It added that the remaining terms of the agreement are confidential and that its liability is limited to the agreed settlement amount of US$600 million.

Following the execution of the agreement, the legal proceedings before the ADGM Court have been discontinued. The proceedings before the High Court of Justice of England & Wales are also in the process of being withdrawn.

According to the bank, the settlement was reached to conclude the disputes, avoid prolonged litigation, reduce legal uncertainty, and eliminate the costs associated with continuing the proceedings.

The announcement weighed on investor sentiment, with Bank of Baroda shares falling over 4% in intraday trade after the disclosure.