Saturday, May 19, 2018

Bank of India to get Rs 19.93 bn from Tata Steel-Bhushan Steel deal

State-owned (BoI) would be able to realise around Rs 19.93 billion from the first successful NCLT resolution concerning and Steel, an official said.
The amount would not include hair-cuts, BoI managing director and chief executive officer D said.
The realisation of the amount would lead to NPA reduction and increase profitability of the bank, he said.
"The first successful NCLT resolution involving and Steel will help in realise Rs 19.93 billion. If there are haircuts, the amount will be written back from provisioning," told at news conference here today.
In the first list of 12 accounts sent to NCLT for resolution under (IBC), BoI's exposure was Rs 83 billion. In the second list of 27 accounts, the exposure was Rs 30 billion, he said.
"Once all the resolutions are successfully completed who is expected in FY 2019, the bank will see a rise in profitability", he added.
Under the Standby Letter of Credit (SLOC) scheme, the bank was able to recover Rs 90 billion and some Rs 5 billion remains, he said.
said that (PNB) had returned Rs 25 billion to BoI which it had honoured in the Nirav Modi scam.
The bank was also in the process of rationalising the number of ATMs based on cost-benefit analysis, he said.
Retail, agri and MSME advances constituted more than 50 per cent of the total lending of the bank, Mohapatra said.

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