Indian Bank Agrees to $600 Million Payout Over UAE Healthcare Firm Collapse

Bank of Baroda will pay $600 million to resolve claims from administrators of the failed NMC group, bringing an end to major court battles in Abu Dhabi and London.

Indian Bank Agrees to $600 Million Payout Over UAE Healthcare Firm Collapse

Bank of Baroda has reached an out-of-court deal to pay $600 million to the administrators overseeing the insolvency of the NMC group, a United Arab Emirates healthcare conglomerate. The agreement terminates legal action before the Abu Dhabi Global Market courts and parallel proceedings in England.

The administrators had pursued the Indian lender for billions, claiming it helped NMC's leadership mask the firm's actual financial health. They alleged the bank processed loans backed by fake invoices and secret borrowings, which allowed executives to hide massive liabilities. Bank of Baroda, which had provided $250 million to NMC and its founder, rejected these accusations throughout the litigation.

The Mumbai-based state-owned bank disclosed the settlement in a stock exchange filing. Under the terms, neither party admits fault or misconduct. The full details remain confidential. Funds were transferred via the lender's branch in Abu Dhabi.

The case traces back to 2020, when NMC Health—previously traded on the London Stock Exchange—imploded after auditors found over $4 billion in concealed debt. The revelation forced the firm into administration and wiped out investments held by numerous UAE banks and creditors. At its height, NMC ranked in the FTSE 100 with a market value near £8.6 billion. The downfall exposed years of manipulated accounts, weak oversight, and deceptive reporting by those running the company.

Court hearings in the ADGM had begun on March 23, 2026. A separate English case was paused awaiting the Abu Dhabi outcome. Both are now being wound down following the deal.

Source: The Indian Express

Source: Google News AE