Shares of Bank of Baroda ended over 4% lower on Thursday after the lender announced an out-of-court settlement with the joint administrators of NMC Health PLC, NMC Healthcare Ltd and NMC Holding Ltd.
The stock closed at Rs 260.25, down Rs 11.40 or 4.20% on the BSE.
In a stock exchange filing, the bank said it has agreed to pay $600 million (around Rs 5,700 crore) to settle the long-running litigation.
The settlement covers proceedings before the Abu Dhabi Global Market Court of First Instance and the High Court of Justice of England & Wales relating to the insolvency of the NMC entities.
Under the settlement agreement, "all claims, causes of action, etc. between them have been resolved without admission of liability or wrongdoing," the filing said. It added that "the settlement agreement and its terms otherwise remain confidential."
Bank of Baroda said its liability in the proceedings is limited to the agreed settlement amount.
Pursuant to the agreement, the Abu Dhabi Global Market proceedings have been discontinued, while the proceedings before the English court are in the process of being discontinued.
The lender said the settlement amount has been paid by its Abu Dhabi branch.
Explaining the rationale for the settlement, the bank said it is intended "to bring the disputes to conclusion thereby avoiding prolonged litigation, uncertainty and associated cost."