Important StoriesNoel Tata, son file caveat in city civil court in trust disputeBank of Baroda to defend any suit brought by NMC Healthcare group’s ShettyN-E monsoon: Trough may bring bursts of showers, deceptive clear spells for TN coastTech Mahindra Q2 preview: Margins seen holding up despite wage hike impactSitharaman’s LTCG, STT remarks lift market sentiment; rupee gains for third straight sessionFollow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. Bank of Baroda to defend any suit brought by NMC Healthcare group’s Shetty Shetty has filed a $15-billion suit against BoB and 25 other defendants, accusing the bank of facilitating corporate fraud linked to the collapse of NMC and UAE Exchange groups By BL Mumbai Bureau Updated - October 14, 2026 at 12:08 PM.×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/bank-of-baroda-to-defend-anysuit-brought-by-nmc-healthcare-groups-shetty/article71582530.eceCopy FILE PHOTO: BoB has said it will take all steps to  protect its interests | Photo Credit: ANUSHREE FADNAVIS

Bank of Baroda (BoB) on Wednesday said it will defend any suit brought in by Bavaguthu Raghuram Shetty, founder of the NMC healthcare group and UAE Exchange, and take all steps necessary to protect its interests.

NMC Healthcare founder Shetty has filed a $15-billion (approximately ₹1.44 lakh crore) civil suit in the Bombay High Court against BoB and 25 other defendants, accusing the state-run lender of facilitating corporate fraud linked to the collapse of the NMC and UAE Exchange groups.

The public sector bank, in an exchange filing, said: “We wish to inform that Bank of Baroda has seen media reports of a suit said to have been filed by Dr. Bavaguthu Raghuram Shetty in the Bombay High Court on 13th October, 2026.

“The Bank has not been served with such a suit and cannot comment on the contents of pleadings which are untested in court. If and when the Bank is served, the Bank will defend the suit firmly and take all steps necessary to protect its interests.”

BoB’s Q1FY27 standalone net profit had dropped 72 per cent year-on-year to ₹1,278 crore against ₹4,541 crore due to the impact of the one-off exceptional payment amounting to $600 million due to settlement in respect of the collapsed UAE-based NMC Group.

Excluding the aforementioned impact of ₹5,680 crore, the public sector bank’s net profit would have been ₹5,528 crore.

Elaborating on the reasons for entering into a settlement with the Administrators of entities within the NMC Group, MD & CEO Debadatta Chand, in a late July 2026 press meet, said: “The (settlement) decision was taken after carefully evaluating the matter from a commercial perspective. The settlement has been concluded without any admission of liability or wrongdoing.

“The bank believed it had a strong basis for entering into the settlement. Since the matter remains sub-judice with respect to other defendants, the settlement terms are confidential.”

He emphasised that resolving this long-pending litigation removes a significant legacy overhang and strengthens the bank’s balance sheet by eliminating a longstanding uncertainty.

In response to queries sent by businessline regarding the $15-billion suit, the bank said it is itself pursuing recovery and enforcement proceedings against Dr BR Shetty in India and the UAE for outstanding dues of around ₹2,800 crore and has obtained several decrees against him. The bank also noted that the Karnataka High Court had restrained Shetty from dealing with or alienating his assets in 2021. Further, in proceedings before the National Company Law Tribunal (NCLT), Shetty had asserted that he was insolvent and unable to meet the bank’s dues.

The bank added that Shetty had previously filed a suit against it before the Supreme Court of the State of New York, raising allegations similar to those contained in the suit reportedly filed before the Bombay High Court. According to the bank, the New York suit was dismissed in July 2024.

The NMC Group was put under administration in 2020 after investigators uncovered billions of dollars in undisclosed debt and evidence of alleged fraud. The joint administrators of the collapsed NMC Health alleged that BoB’s UAE operations had facilitated certain financing arrangements, enabling the company to conceal debt. The bank has denied any wrongdoing in this case.

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