Archive · 24 Jul 2026
Bank of Baroda Settles NMC Case
Bank of Baroda recently settled a long-standing legal case with NMC Group for $600 million.
The bank's CEO, Debadatta Chand, explained that the settlement was based on commercial considerations and the expectation of a prolonged legal process.
The settlement amount covered the bank's entire liability in the case.
The bank had previously claimed it had a strong legal defense but decided to settle to avoid a lengthy legal overhang.
The settlement significantly impacted the bank's profitability, reducing its net profit by 71.8% year-on-year.
Despite this, the bank's loan and deposit growth remained strong, with a 17.4% increase in loans and a 13.8% increase in deposits.
The bank plans to maintain its credit growth guidance of 12-14% for the fiscal year 2027.
Bank of Baroda settled a legacy litigation case with NMC Group for $600 million.
The settlement was based on commercial considerations and anticipation of a long legal overhang.
The settlement amount covered the bank's entire liability in the case.
The settlement reduced the bank's net profit by 71.8% year-on-year.
Despite the financial impact, the bank's loan and deposit growth remained strong.
- Who
- Bank of Baroda, NMC Group, B.R. Shetty, Prashant Manghat
- What
- Settlement of a legacy litigation case involving NMC Group
- When
- 1 July 2026
- Where
- Mumbai, Abu Dhabi Global Market, UK
- Why
- Commercial considerations and anticipation of a long legal overhang
Bank's Decision to Settle
Previous Strong Legal Stance
Settlement Basis
Bank's Decision to Settle
The settlement was based on commercial considerations and the anticipation of a long legal overhang.
Previous Strong Legal Stance
The bank previously claimed it had a robust defense in facts and law.
Financial Impact
Bank's Decision to Settle
The settlement amount was a prudent decision given the trial stage.
Previous Strong Legal Stance
The settlement significantly impacted the bank's profitability, reducing net profit by 71.8% year-on-year.
- Settlement Amount
- $600 million (₹5,700 crore)
- Bank's Net Profit Impact
- ₹1,207 crore (71.8% lower year-on-year)
- Operating Profit Decline
- 1.3% year-on-year decline to ₹8,127 crore
- Other Income Decline
- 25.8% decline to ₹3,470 crore
- Net Interest Income Increase
- 9.5% increase to ₹12,524 crore
- Loan Growth
- 17.4% year-on-year growth to ₹14.2 trillion
- Deposit Growth
- 13.8% year-on-year growth to ₹16.3 trillion
- Credit Growth Guidance
- 12-14% for FY27