Bank of Baroda shares fell by as much as 3.36 % to ₹230.40 on the NSE on Wednesday, 14 October, after reports surfaced that the state‑owned lender may face a $15 billion lawsuit. The news prompted investors to reassess the bank’s risk profile, leading to a sharp decline in its market value. The drop came amid speculation that the suit, filed in the Bombay High Court, could have significant financial implications for the lender in the banking sector.

According to Business Standard, B R Shetty, founder of the NMC Healthcare group, filed a lawsuit in the Bombay High Court on 13 October 2026 seeking $15 billion in damages from Bank of Baroda and 25 other defendants. He alleges that the bank and former NMC executives enabled the diversion of funds, concealed liabilities and pursued him on guarantees bearing forged signatures. The petition requests $5 billion in direct damages, another $5 billion in consequential damages, and a further $5 billion for reputational harm, totaling approximately ₹1.44 lakh crore, with interest at 18 % per annum.

The Hindu BusinessLine reported that Shetty, acting through his constituted attorney, Dr Shishir Shetty, has alleged in the suit that Bank of Baroda served as an “instrument of fraud”. According to the allegations, former senior executives, including brothers Prasanth Manghat and Promoth Manghat, siphoned funds from group entities, concealed debt and exposed Shetty to liabilities through allegedly forged guarantees. Shetty claims he relinquished control of the group companies in 2012 and stepped down as chief executive officer in March 2017, yet learned only in early 2020 that he remained NMC’s chairman, prompting his resignation.

The complaint further alleges that Bank of Baroda ignored repeated anti‑money‑laundering alerts, extended credit without adequate security, facilitated transactions through supplier accounts used for round‑tripping, and concealed its lending exposure from auditors. It also accuses certain bank officials of accepting gifts and failing to act on warning signs despite internal scrutiny. These allegations are claims made in the lawsuit and have not been established by a court in the current legal proceedings.

On 14 October, Bank of Baroda issued a clarification stating it had not been served with the suit and could not comment on its contents, which remain untested in court. The lender said it would firmly defend the suit and take all necessary steps to protect its interests if and when it is served. The clarification was issued after media reports claimed the suit was filed on 13 October 2026, but the bank emphasised that the allegations are unverified and pending judicial scrutiny.