Bank of Baroda said its recent settlement in the legacy NMC Group litigation was driven by commercial considerations and the expectation that the case could otherwise create a prolonged legal overhang for the lender. The bank’s comments came after it disclosed a $600 million settlement tied to the long-running matter.
The impact of the NMC settlement was visible in the bank’s first-quarter earnings. Net profit fell 72% to ₹1,207 crore, with the one-time hit wiping out most of the quarter’s profit. The result underscored how sharply exceptional legal costs can affect reported earnings even when the broader business remains active.
At the same time, Bank of Baroda kept its FY27 credit growth guidance unchanged. That stance came despite reporting 17.4% loan growth, suggesting the lender is still confident about its medium-term lending trajectory even after absorbing the settlement-related charge.
The bank also pointed to rising FCNR inflows, a supportive factor for funding and deposit trends. Together, the steady guidance, loan growth and stronger FCNR inflows indicate that while the NMC settlement weighed heavily on quarterly profit, management is positioning it as a step to clear uncertainty from a legacy dispute.
