1. Bank of India expects to return to black in Q2

Bank of India expects to return to black in Q2

Last month, the RBI identified 12 large accounts (with exposure of more than Rs 5,000 crore and more than 60% of which is recognised as NPAs) which banks have to refer to the new Insolvency and Bankruptcy Code (IBC). “We are hopeful of resolving these 10 cases through IBC,” Mohapatra said.

By: | Kolkata | Published: July 16, 2017 5:10 AM
Bank of India, BoI, Reserve Bank of India, RBI, reserve bank of India, non-performing assets, NPA, Dinabandhu Mohapatra BoI’s overall exposure to these 10 accounts is around Rs 7,000-8,000 crore.

Public sector lender Bank of India (BoI) on Saturday said it has exposure to 10 of the 12 large stressed accounts, identified by the Reserve Bank of India (RBI). BoI’s overall exposure to these 10 accounts is around Rs 7,000-8,000 crore. Although the RBI has asked the lenders to provide higher provisioning on these 12 large NPA (non-performing assets) accounts, BoI managing director & chief executive officer Dinabandhu Mohapatra said it would not hit the bank.

“Many banks will take a hit because of the additional provisioning towards these large NPA accounts. But, we had been providing higher provisioning on all NPA accounts from earlier, so we will get benefit,” Mohapatra said. “Our bank is one of the few banks whose provision coverage ratio is over 60%. Currently, it stands at around 62%,” he informed.

Last month, the RBI identified 12 large accounts (with exposure of more than Rs 5,000 crore and more than 60% of which is recognised as NPAs) which banks have to refer to the new Insolvency and Bankruptcy Code (IBC). “We are hopeful of resolving these 10 cases through IBC,” Mohapatra said.

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