The state-owned Bank of India(BoI) would be able to realise
around Rs 1993 crore from the first successful NCLT resolution concerning Tata Steel and Bhushan Steel, an official said.
The amount would
not include hair-cuts, BoI managing director and chief executive officer D
Mohapatra 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 Tata Steel and Bhushan Steel will help in
realise Rs 1993 crore. If there are haircuts, the amount will be written back
from provisioning," Mohapatra told at news conference here today.
In the first list of
12 accounts sent to NCLT for resolution under Insolvency and Bankruptcy Code
(IBC), BoI's exposure was Rs 8300 crore. In the second list of 27 accounts, the
exposure was Rs 3000 crore, 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 9000 crore and
some Rs 500 crore remains, he said.
Mohapatra said that
Punjab National Bank (PNB) had returned Rs 2500 crore 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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