Bank of Baroda shares fall 3% as BR Shetty files $15 billion lawsuit; lender vows to defend claims

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Bank of Baroda shares fell 3 percent in early trade on Wednesday, emerging as the top loser on the Nifty 100 after NMC Healthcare founder BR Shetty reportedly filed a $15 billion damages lawsuit against the public sector lender and 25 other defendants in the Bombay High Court. The bank said it had not yet been served with the suit but would firmly defend itself against the allegations.

Bank of Baroda shares declined to Rs 231.30, compared with Tuesday's closing price of Rs 238.43. The stock has fallen 22.7 percent so far in 2026, underperforming the Nifty 50, which has declined 13 percent during the period. The bank's market capitalisation stood at approximately Rs 1.2 lakh crore.

The decline came amid a subdued opening for the broader market. At 9:18 am, the Sensex was down 51.72 points, or 0.07 percent, at 72,982.06, while the Nifty fell 33.30 points, or 0.15 percent, to 22,688.65. Market breadth remained positive, with 1,299 shares advancing against 1,148 declines.

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BR Shetty seeks $15 billion in damages

Shetty, the founder of NMC Healthcare and UAE Exchange, has reportedly filed a suit seeking $15 billion, or approximately Rs 1.44 lakh crore, in damages from Bank of Baroda and 25 other defendants, alleging that the lender and some of its officials facilitated fraudulent transactions involving his group companies.

According to reports citing the petition, Shetty has claimed $5 billion each in direct damages, consequential damages, including lost business opportunities, and compensation for alleged reputational damage. He has also sought interest at 18 percent annually on the damages claimed.

The petition alleges that Bank of Baroda facilitated the diversion of funds through accounts associated with purported suppliers, failed to adequately investigate anti-money-laundering alerts and allowed unauthorised transactions.

Shetty has further alleged that personal guarantees bearing forged signatures were used to secure loans and pursue liabilities against him. He has sought disclosure of banking records and internal compliance documents. The allegations have not been established by a court.

Bank of Baroda rejects allegations, cites Rs 2,800 crore dues

Responding to reports of the lawsuit, Bank of Baroda said it had not been formally served with the suit and could not comment on allegations that remained untested in court. "If and when the Bank is served, the Bank will defend the suit firmly and take all steps necessary to protect its interests," the lender said.

The bank said it was pursuing recovery proceedings against Shetty in India and the UAE for outstanding dues of approximately Rs 2,800 crore and had obtained several decrees against him. It also cited a 2021 Karnataka High Court order restraining Shetty from disposing of his assets and said he had subsequently asserted insolvency before the National Company Law Tribunal.

Bank of Baroda further pointed out that a lawsuit filed by Shetty in New York, raising similar allegations, was dismissed in July 2024. The lender said judgment was also reserved in proceedings against Shetty and former NMC executive Prashant Manghat before the Abu Dhabi Global Market Court concerning allegations of fraud, wrongful trading and fraudulent trading.

Bank of Baroda's $600 million NMC settlement

The fresh lawsuit comes just over three months after Bank of Baroda agreed to pay $600 million, or approximately Rs 5,700 crore, to settle litigation involving NMC group companies and their joint administrators. The July 2026 settlement resolved claims against the lender arising from the collapse of NMC Health, following the discovery of billions of dollars in previously undisclosed debt.

Bank of Baroda maintained that the settlement involved no admission of wrongdoing or liability. Its financial impact was recognised in the June 2026 quarter results. The bank reiterated that proceedings against it before the Abu Dhabi Global Market Court had been discontinued following the settlement.

However, Shetty has reportedly argued that he was not a party to the settlement and that it does not extinguish his separate claims. The $15 billion sought in the fresh lawsuit represents claimed damages, not an established liability against the bank.