BoI hopeful of recovering Rs 130 cr lost in Parekh scam

New Delhi, Jan 5 | Updated: Jan 6 2006, 05:30am hrs
Bank of India is hoping to recover a sum of Rs 130 crore, which it lost in the scam involving Ketan Parekh and Madhavpura Mercantile Cooperative Banks.

BoI chairman and managing director M Balachandran said here on Thursday that the bank has got a favourable verdict from courts for attachment of properties and assets of Ketan Parekh. However, in the case of Madhavpura there has been little progress as it has managed to obtain a stay order in the high court.

Mr Balachandran added that this sum would significantly boost the banks balance sheet. Meanwhile, with a view to boost deposits, Bank of India has increased the short-term deposit rates by 25 basis points.

The bank is expecting to achieve a 15% growth rate in deposits in 2005-06. The banks deposits saw an 11.5% increase in the April-December period. The deposits were estimated at Rs 89,551 crore in December 2005 while it was Rs 79,205 crore in March 2005.