Bank of Baroda has reached a $600 million out-of-court settlement with NMC Health and its affiliates, resolving a protracted legal dispute that has lingered on the lender's balance sheet.
The agreement marks a definitive end to the litigation, allowing the Indian public sector bank to close a major chapter of its non-performing asset cleanup efforts.
The settlement figure represents a compromise after months of stop-start negotiations between the two parties.
By opting for an out-of-court resolution, Bank of Baroda avoids the uncertainty and potential reputational risk of a prolonged trial, while NMC Health secures a cap on its exposure to the claim.
The deal is expected to provide clarity on the bank's provisioning requirements for this specific exposure.
NMC Health, which has faced intense scrutiny and regulatory challenges in recent years, has been engaged in multiple legal battles globally.