Bank of Baroda shares drop 3% after NMC Healthcare founder BR Shetty files $15 bn lawsuit; lender issues clarification
Bank of Baroda shares tumbled to Rs 230.40 apiece on NSE. This came after BR Shetty’s reported lawsuit, filed at the Bombay High Court, sought $5 billion in direct damages for alleged fraud and negligence, $5 billion in consequential damages and $5 billion in compensation for reputational harm arising from various actions taken by the bank, including a lookout circular issued against him. He also sought 18% interest on the first $10 billion, the ET report added.
Also read | Bank of Baroda to pay $600 million to settle NMC Health insolvency claims
What are BR Shetty’s allegations against Bank of Baroda?
Shetty’s lawsuit names Bank of Baroda, many of its current and former executives, former NMC employees, along with other individuals and companies, ET reported. His case is linked to one in the UAE that Bank of Baroda settled in July by paying roughly $600 million (around Rs 5,700 crore) to the administrators of the insolvent NMC and its affiliates. Administrators of the UAE-based healthcare group had accused Bank of Baroda of facilitating improper transactions in cahoots with Shetty, without doing due diligence and following proper anti-money-laundering and customer verification processes.
UAE-based healthcare provider NMC Health was declared insolvent in 2020 after it was found that it had hidden more than $4 billion in debt. Besides BoB, other creditors to the company are Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD among others.
Also read | NMC Healthcare founder BR Shetty files $15 billion lawsuit against Bank of Baroda
Bank of Baroda issues clarification
Following the sharp drop in share price, Bank of Baroda issued a clarification to exchanges, stating that it has not been served with such a suit.”If and when the bank is served, the bank will defend the suit firmly and take all steps necessary to protect its interests,” the PSU lender said in its exchange filing.
Bank of Baroda share price
Bank of Baroda shares have fallen more than 1% in a week and nearly 3% in a month, with the stock overall being down 23% in 2026 so far, underperforming the Nifty Next 50 index which is down only 1% during the same time.
The shares of the PSU lender have dropped over 12% in one year. In the longer term, the stock delivered positive returns of nearly 14% in three years and 161% in five years. The company’s market capitalisation stands at around Rs 1.2 lakh crore.
Also read | Which bank stock should you buy ahead of Q2 results – HDFC Bank, ICICI Bank, Yes Bank or Axis Bank?
Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
