Bank of Baroda pays $600 million to settle NMC Health litigation

Mumbai: State-owned Bank of Baroda paid $600 million (approx. ₹5,700 crore) in an out-of-court settlement to resolve years-long litigation in connection with the collapse of UAE-based healthcare provider NMC Health, the lender said in an exchange filing on Thursday.

The bank’s Abu Dhabi branch completed the payment as part of the settlement agreement reached with the joint administrators of NMC Health PLC, NMC Healthcare Ltd and NMC Holding Ltd.

The agreement resolves all claims between the parties without admitting any liability or wrongdoing on the part of the bank, according to the filing. Terms of the agreement remain confidential, except for the settlement amount.

The bank’s shares fell on Thursday following the news. They closed down more than 4.3 percent on the National Stock Exchange. ₹259.85 per person in a positive market.

“NMC Health PLC, NMC Healthcare Ltd, NMC Holding Ltd and their respective Joint Managers have settled their claims with Bank of Baroda, inter alia, in return for payment of US$600 million by Bank of Baroda pursuant to a settlement agreement,” the bank said.

The case arose from insolvency and civil proceedings brought before the Abu Dhabi Global Market Tribunal and the High Court of Justice of England and Wales in relation to NMC Health and its group companies. While the Abu Dhabi trials started on March 23, the trials in England were suspended until the outcome of the Abu Dhabi trial.

According to the application, after the agreement, the cases in the Abu Dhabi court were stopped, and the cases in England are in the process of being withdrawn.

The agreement aims to end disputes and prevent protracted disputes, the bank said. litigation and its associated uncertainty and costs.

“The above solution is to conclude disputes and thus avoid protracted litigation, uncertainty and associated costs,” the lender said.

In the quarter ending March, the state bank’s asset quality improved and the gross non-performing assets ratio fell to 1.89% from 2.04% in the previous quarter. Open The NPA rate also increased from 0.57% in the December quarter to 0.45% as of the end of March.