MUMBAI, July 3 -- State-owned Bank of Baroda has agreed to pay $600 million, or approximately Rs.5,700 crore, in an out-of-court settlement to resolve years-long litigation linked to the collapse of United Arab Emirates (UAE)-based healthcare provider NMC Health.

The one-time payout, equivalent to nearly 28% of the lender's fiscal year 2026 (FY26) net profit of Rs.20,021 crore, is expected to dent earnings in the coming quarters, although analysts say it is unlikely to affect the bank's long-term growth prospects or capital position.

"The bank has not made a provision for the settlement and treated it as a contingent liability, which means it's a fresh hit on the company's profit and loss account," said Akshay Tiwari, associate vice pre...