Moneycontrol
Last Updated : Mar 13, 2018 10:19 AM IST | Source: Moneycontrol.com

Bank of India zooms 10% on Rs 7000cr recovery from other banks

The bank has recovered Rs 7,000 crore worth Standby Letters of Credit (SLOCs) in the last two months and the balance of Rs 2,000 crore would be recovered in another two months, a top bank official said.

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Shares of Bank of India rose 10 percent in the early trade on Tuesday on the back of recovery of Rs 7,000 crore from other banks.

The bank has recovered Rs 7,000 crore worth Standby Letters of Credit (SLOCs) in the last two months and the balance of Rs 2,000 crore would be recovered in another two months, a top bank official said.

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This recovery will substantially improve the bank's balance sheet, Bank of India Executive Director N Damodharan told reporters.

The bank has embarked on a plan, following restrictions from RBI on it under the Prompt Corrective Action (PCA) framework. The bank is aiming to bring down its net NPA ratio substantially, to below 6 percent, he said.

The company had reported net loss of Rs 2,341.20 crore for the December quarter 2017, against profit of Rs 107.72 crore in year-ago.

Its gross non-performing assets (NPA) were sharply higher at 16.93 percent in Q3 against 12.62 percent in previous quarter while net NPAs were also higher at 10.29 percent compared to 6.47 percent QoQ.

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At 09:25 hrs Bank of India was quoting at Rs 104.40, up Rs 9.30, or 9.78 percent on the BSE.

With inputs from PTI
First Published on Mar 13, 2018 09:33 am
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