Bank of Baroda Faces Abu Dhabi Legal Battle over NMC Collapse

Bank of Baroda is facing a significant legal challenge in Abu Dhabi related to alleged financial irregularities at its operations connected to the collapse of NMC Healthcare, a major healthcare provider based in the United Arab Emirates and listed on the London Stock Exchange. The litigation has become a major reputational and financial issue for the bank, with arguments over its conduct before and after the collapse of NMC.

Senior Advocate Harish Salve has confirmed that he will represent Bank of Baroda in the ongoing proceedings before the Abu Dhabi Global Market Courts. The case has been described by counsel as a “great reputational matter” and is scheduled for key hearings in May and June 2026. Analysts say the legal fight could result in significant legal expenses and management focus being diverted from core banking operations.

Bank of Baroda’s stock price has been trading around ₹313.30, reflecting a market capitalisation of about ₹1.60 trillion as of 23 February 2026. However, the ongoing legal battle represents an unquantifiable contingent liability that could lead to heavy legal costs, potential settlements, or regulatory penalties that might affect future earnings.

This case is part of broader legal proceedings connected to the collapse of NMC Healthcare, which revealed billions of dollars in previously undisclosed debt and triggered investigations and civil actions in the UAE and abroad. The Abu Dhabi Global Market has previously ordered disclosure of internal bank reports on suspected transactions tied to the NMC case, intensifying scrutiny on Bank of Baroda’s controls and compliance.

While Bank of Baroda’s fundamentals, including favourable price-to-earnings ratios compared with some peers, remain relatively strong, the additional regulatory and reputational risks posed by this international litigation suggest that investors should closely monitor developments.