Bank of Baroda Shares Drop 3% Amid $15 Billion Lawsuit
Bank of Baroda faces a significant drop in share value following a $15 billion lawsuit filed by BR Shetty, prompting a strong defense from the lender.
Bank of Baroda shares fell 3% to Rs 231.30 after BR Shetty's lawsuit.
Shetty claims $15 billion in damages, alleging fraudulent transactions facilitated by the bank.
The bank is pursuing recovery proceedings against Shetty for outstanding dues of Rs 2,800 crore.
Shares of Bank of Baroda experienced a 3% decline in early trading on Wednesday, making it the leading loser on the Nifty 100 index. This drop follows the filing of a $15 billion lawsuit by BR Shetty, the founder of NMC Healthcare, against the public sector bank and 25 other defendants in the Bombay High Court. Although the bank has not yet been formally served with the lawsuit, it has committed to vigorously defending itself against the allegations.
The stock price of Bank of Baroda fell to Rs 231.30, down from Rs 238.43 at the previous day's close. This decline is part of a broader trend, with the bank's shares dropping 22.7% in 2026, significantly underperforming the Nifty 50, which has seen a 13% decrease during the same period. The bank's market capitalization is approximately Rs 1.2 lakh crore. The overall market also opened weak, with the Sensex down 51.72 points and the Nifty down 33.30 points.
In the lawsuit, Shetty alleges that Bank of Baroda and its officials facilitated fraudulent transactions involving his companies, seeking $15 billion in damages. This amount includes claims for direct damages, lost business opportunities, and compensation for reputational harm, with a request for 18% annual interest on the claimed damages. The allegations suggest that the bank did not adequately investigate anti-money laundering alerts and allowed unauthorized transactions to occur.
Bank of Baroda has stated that it is currently engaged in recovery efforts against Shetty for outstanding dues amounting to approximately Rs 2,800 crore and has secured several decrees against him. Additionally, the bank highlighted a 2021 Karnataka High Court order that restricts Shetty from disposing of his assets. A previous lawsuit filed by Shetty in New York, which contained similar allegations, was dismissed in July 2024.
Looking ahead, the bank is preparing to defend itself against the new lawsuit while continuing its recovery efforts. The recent lawsuit follows a settlement in July 2026, where Bank of Baroda agreed to pay $600 million to resolve litigation related to NMC group companies. However, Shetty contends that he was not part of that settlement and that it does not negate his claims. The bank maintains that the settlement does not imply any admission of wrongdoing or liability.
