Asset quality likely to improve in H2FY12: Bank of India

Like its peers, asset quality has been a key concern for public sector lender, Bank of India (BoI). However, N Seshadri, executive director, Bank of India expects to see a significant improvement in the asset quality in second half of FY12.

Speaking to CNBC-TV18, he said, "We are seeing a good amount of recovery. We would definitely see a substantial improvement in terms of the asset the quality and recovery in the future quarters." BoI has an exposure of Rs 6,500 crore to state electricity boards (SEBs). In an interview to CNBC-TV18, Seshadri said that the bank is in talks with SEBs to reschedule payments. Further, it has also lent Rs 500 crore to Kingfisher Airlines (KFA) and is in talks with the cash strapped airlines for restructuring. Adding to this, Seshadri said,