Bank of Baroda (BoB) shares fell about 3 per cent on October 14. Reports said NMC Healthcare founder B R Shetty sued the bank for $15 billion. The bank says it has not been served.
Bank of Baroda Shares Hit a Low of ₹230.40
Bank of Baroda stock slipped 3.4 per cent to an intraday low of ₹230.40 on Wednesday. At 10:05 am IST, it traded at ₹232 on the NSE, down 2.7 per cent. The Nifty PSU Bank index was down 0.6 per cent at that time.
The stock sits close to its 52-week low of ₹223.82, hit on September 29, 2026. Its 52-week high is ₹325.50, hit on February 26, 2026. Most other public sector bank stocks held small gains on the day, according to Business Standard. Central Bank of India rose 4.4 per cent. Bank of Maharashtra and Indian Bank fell more than 1 per cent each.
Why Did Bank of Baroda Shares Fall on October 14?
Business Standard linked the fall to reports of the $15 billion suit. The stock dropped as much as 3.4 per cent during the morning session, while the Nifty PSU Bank index slipped 0.6 per cent.
What the Lawsuit Says
B R Shetty, founder of the NMC Healthcare group, filed the suit in the Bombay High Court. It names BoB and 25 other defendants. The bank’s own filing says the suit was reportedly filed on October 13, 2026.
Shetty seeks $5 billion in direct damages and $5 billion in consequential damages from the defendants together. He also seeks $5 billion from BoB for alleged harm to its reputation and goodwill. The suit asks for interest at 18 per cent a year.
Among the defendants are BoB, 10 of its officers and former NMC and UAE Exchange executives. Two Indian companies are also named.
The suit alleges that the bank and former executives helped divert funds and hide liabilities. It also claims the bank pursued Shetty over guarantees that carry forged signatures.
Shetty’s account in the suit goes like this. He says he gave up control of the group companies in 2012. He says he stepped down as chief executive in March 2017. He says he learned only in early 2020 that he was still chairman, and he then resigned.
Business Standard reported that the suit makes further claims against the bank. They include ignoring anti-money laundering alerts, giving credit without enough security and hiding its lending exposure from auditors. Business Standard noted that a court has not established any of these allegations.
One claim involves the auditor, EY. The suit says 15 balance confirmations were prepared but only 11 reached the auditor. A balance confirmation is a letter that a bank sends to an auditor to confirm a company’s loan balance.
The Claims Are Allegations, Not Findings
The claims are Shetty’s allegations in a court filing. Business Standard noted that a court has not established them. The bank says the claims are untested.
Has Bank of Baroda Been Served with the Lawsuit?
Not yet, according to the bank. Its statement on October 14 said it has not been served with the suit.
BoB filed a statement with the exchanges on Wednesday. It said it had seen media reports of a suit said to have been filed by Shetty in the Bombay High Court on October 13.
The bank said it cannot comment on claims that have not been tested in court. If it is served, it will defend the suit firmly and take all steps needed to protect its interests.
The Earlier $600 Million Settlement
This is not the first big NMC case for the bank. On July 2, 2026, BoB told the exchanges about a settlement. It covered claims from the administrators of NMC Health PLC, NMC Healthcare Ltd and NMC Holding Ltd.
BoB paid US$600 million, about ₹5,700 crore, through its Abu Dhabi branch. The filing says the claims were resolved without any admission of liability or wrongdoing. The bank said its liability in those cases was limited to that sum.
The trial in the Abu Dhabi Global Market court began on March 23, 2026. The filing says the proceedings in that court were discontinued under the deal. The related case in England was being discontinued.
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A Separate Dubai Court Ruling
An earlier ruling in a different case involved Shetty’s personal guarantees. AGBI, a Gulf business news site, reported that a Dubai International Financial Centre court found Shetty personally liable for $33.2 million owed to BoB.
Shetty said he had not signed the guarantee. The court noted that he gave no evidence. It accepted handwriting analysis from the bank. A later request by Shetty to challenge that ruling was refused, AGBI reported. AGBI also reported that a Dubai court ordered Shetty to pay $106 million to ICICI Bank over personal guarantees.
Who is B R Shetty?
Shetty is the founder of the NMC Healthcare group. NMC Health was once the Gulf’s largest private healthcare provider. It entered administration in 2020 after billions of dollars of undisclosed debt came to light. Its main operating arm left administration in 2022 after a $4 billion restructuring led by Abu Dhabi Commercial Bank.
Shetty has denied wrongdoing. He has said he was a victim of fraud inside NMC, according to AGBI.
What Analysts Expect from the Next Results
Brokerages expect BoB to report double-digit profit growth for the July to September quarter. Mirae Asset Sharekhan expects a 13.5 per cent rise in net profit and a 5.2 per cent rise in net interest income. Motilal Oswal expects profit to rise 10 per cent and net interest income to rise 3.5 per cent.
Both brokerages point to gains from the NSE stake sale. These are analyst estimates, not company numbers.
