Bank of Baroda shares came under selling pressure on Wednesday, falling as much as 3% to hit an intraday low of Rs 230.45 per share, after the lender issued a clarification regarding media reports of a lawsuit filed by NMC founder B.R. Shetty in the Bombay High Court.
At 9:30 am, Bank of Baroda shares were trading 2.69% lower at Rs 231.20 per share. In comparison, the BSE Sensex was down 0.11% at 72,945.
Bank Of Baroda Clarifies On B.R. Shetty's Lawsuit
Bank of Baroda said it had taken note of media reports concerning a suit reportedly filed by Dr. B.R. Shetty in the Bombay High Court on October 13, 2026. The lender clarified that it had not been served with the suit and therefore could not comment on the contents of the pleadings, which have not been tested in court.
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The bank said it would firmly defend itself if and when it is formally served with the lawsuit.
READ | Bank Of Baroda Says It Has Not Been Served In BR Shetty Lawsuit, Vows To Defend Case
The reported legal action comes amid a long-running dispute involving Shetty, the founder of NMC Health, and the lender over financial transactions and guarantees linked to the group.
Bank Of Baroda Pursues Rs 2,800 Crore Recovery
The bank said the matters referenced in media reports are also the subject of proceedings before the Abu Dhabi Global Market (ADGM) Court.
According to Bank of Baroda, the ADGM Court has reserved its judgment against Shetty and Prashant Manghat in proceedings concerning allegations of fraud, wrongful trading and fraudulent trading. The bank said the proceedings against it before the ADGM Court have been discontinued.
The lender added that the matters remain sub judice and declined to comment on the allegations against Shetty.
Separately, Bank of Baroda is pursuing recovery of around Rs 2,800 crore from Shetty and is continuing enforcement proceedings against him in India and the UAE.
Previous Legal Proceedings Involving B.R. Shetty
The dispute has been unfolding across multiple jurisdictions. In 2021, the Karnataka High Court restrained Shetty from dealing with or alienating his assets.
Shetty has also told the National Company Law Tribunal (NCLT) that he is insolvent and unable to meet his dues to the bank.
In another development, Shetty had previously filed a lawsuit against Bank of Baroda in the Supreme Court of the State of New York. That suit was dismissed in July 2024.
Why Has B.R. Shetty Sued Bank Of Baroda?
NMC founder B.R. Shetty has reportedly sought Rs 1.44 lakh crore in damages from Bank of Baroda in the latest lawsuit.
Shetty alleges that the bank relied on guarantees bearing forged signatures and claims that funds were diverted through disputed transactions. He has also argued that he had stepped away from the group before several of the loans at the centre of the dispute were granted.
The lawsuit also reportedly questions Bank of Baroda's settlement with the administrators of NMC Health.
The allegations remain subject to legal proceedings, and Bank of Baroda has said it will defend the suit if it is formally served.
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