ABU DHABI — Bank of Baroda agreed to pay $600 million to resolve claims by NMC Health PLC, NMC Healthcare Ltd, NMC Holding Ltd, and their joint administrators. The bank issued a notice to stock exchanges regarding the settlement but did not disclose specific terms.

The claims arose from NMC Health's insolvency, which led to proceedings in the Abu Dhabi Global Market Court of First Instance and the England & Wales High Court. Alvarez & Marsal, a global insolvency resolution company, made Bank of Baroda a party to the recovery process. Rohan Mandora, an analyst at Equirus Securities, stated: "A&M alleges the bank was grossly negligent for failing to follow proper AML/KYC procedures, continued processing payments it knew were fraudulent, and failed to conduct due diligence on accounts for 'sham' suppliers used for pass-through payments via fake invoices."

A person familiar with the matter said: "The whole premise is that the banks did not stop these fraudulent activities and was in cohorts with the promoters and other officials of NMC which makes it liable to pay up to the other stakeholders in this case." The source added: "The fraud was established and the bank also did not do its duty and inform other creditors because of which they had to face losses."

A person aware of the details said the settlement covers claims of other creditors. "The administrators have taken a view that all transactions were routed through BoB and they were authorizing payments that were not in sync with anti-money guidelines," the person said, calling it "an 'Act of negligence' or 'collusion with promoters.'" Following the disclosure, Bank of Baroda's shares fell 4% to Rs 260.