State-owned Bank of Baroda (BoB) reported a sharp 72% year-on-year decline in net profit for the first quarter of FY2026-27, with earnings falling to ₹1,278 crore. The steep drop was primarily due to a one-time provision of $600 million (around ₹5,700 crore) made to settle a long-running legal dispute related to the collapse of UAE-based NMC Health. The bank said the settlement fully resolves all litigation with the joint administrators of NMC Health, NMC Healthcare Ltd, and NMC Holding Ltd.
Excluding the one-time settlement cost, Bank of Baroda’s net profit for the quarter would have stood at ₹5,528 crore, reflecting the strength of its underlying business. The bank had posted a net profit of ₹5,616 crore in the previous quarter and ₹4,541 crore in the corresponding quarter last year.
The dispute dates back to the 2020 collapse of NMC Health after billions of dollars in previously undisclosed debt were discovered. Legal proceedings were initiated against NMC founder B.R. Shetty, former CEO Prasanth Manghat, and Bank of Baroda in multiple jurisdictions. However, the bank reiterated that the settlement was reached without any admission of liability or wrongdoing. Managing Director and CEO Debdatta Chand said the financial impact has been fully accounted for in the June quarter, bringing closure to a complex cross-border legal battle spanning several years.