Noida, July 3 (APAC Media): Shares of Bank of Baroda fell around 3% on Friday after the state-owned lender agreed to pay $600 million (about ₹5,700 crore) to settle a long-running dispute linked to the collapse of UAE-based NMC Health.
The settlement is believed to be the largest out-of-court payout by an Indian public sector bank in a cross-border litigation case.
Extending its losing streak for a second session, the stock dropped as much as 2% to ₹254.85, pulling market capitalisation to around ₹1.32 lakh crore.
On Thursday, shares had closed 4.2% lower on the BSE, marking a two-day decline of more than 6%.
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In a regulatory filing, the bank said it had entered an out-of-court settlement with the joint administrators of NMC Health PLC, NMC Healthcare, and NMC Holding.
The agreement resolves proceedings before the ADGM Court of First Instance and the High Court of Justice of England & Wales.
The bank said the settlement was without admission of liability, and the terms remain confidential.
It added that the proceedings in Abu Dhabi have been discontinued and UK proceedings are being withdrawn.
Nomura retained a neutral rating on Bank of Baroda, saying the payout equals nearly 4% of net worth.
It expects the one-time charge to impact Q1 earnings, as a provision is likely in FY27.
Despite the legal overhang, the bank reported strong provisional Q1FY27 business growth across loans and deposits.
Global business rose 15.46% to ₹30.51 lakh crore as of June 30, 2026, driven by advances and deposit growth.
Domestic advances and retail lending also showed strong double-digit growth year-on-year.
Retail loans grew faster than the overall book, supported by demand for housing, vehicle and personal loans.
Domestic deposits also recorded steady expansion during the quarter.
Analysts say the settlement removes a key legal overhang, but near-term earnings may remain under pressure due to the one-off provisioning.
Investors will closely track asset quality trends, credit growth momentum and recovery in net interest margins over the coming quarters as the lender navigates global uncertainties and domestic credit demand cycles.
Market sentiment is expected to remain cautious in the near term amid global financial volatility and the outlook for the banking sector.
–ENDS–
Disclaimer: Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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