Bank of India(BoI) may get new MD soon

State Bank of India (SBI) managing director B Sriram is likely to be appointed to the same position in Bank of India (BoI) while BoI managing director Dinabandhu Mohapatra may be asked to move to Allahabad Bank, said sources.

The buzz over these appointments were triggered by Bank of India's disappointing quarterly results on Monday. The bank reported a fourth-quarter net loss of Rs 3,969.27 crore, more than double of the Rs 1,045.52 crore loss posted in the same quarter last year.

The bank's asset quality worsened and its provisions increased in the March quarter, ending the fiscal of 2017-2018. The Bank of India posted their total provisions at Rs 6,674.12 crore from the Rs 4,736.21 crore a year ago in the corresponding quarter. The share for non-performing assets, out of the provisions, was Rs 6,699.23 crore in the fourth-quarter, weakened as compared to the year-ago period.

The bank's income in the fourth quarter slipped to Rs 2,563.85 crore from the Rs 3,469 crore in the year-ago period.India's banking sector has been facing the NPAs problem at large. The Reserve Bank of India (RBI), last year, had released a list of large defaulters, in which state-run banks were among those that lent the maximum to such defaulters.

The debt-laden companies are still facing their insolvency procedures under the Insolvency and Bankruptcy Code (IBC). The State Bank of India, though posted a major loss in the March quarter, posted a guidance that it is on a recovery path from the banking sector's bad loan mess - making it a plausible reason for the government to choose the SBI chief to head the NPA-stricken state-run bank.

SBI, in its media briefing, said the recognition of the NPA has been completed and that the bank is fully compliant with RBI's February 12 circular.The coverage ratio for National Company Law Tribunal's (NCLT) second list, the bank claims, stands at 75% and the lender is not expecting the loss to exceed 53% for the first list of defaulters. The bank expects the haircut to be 52% for the first NCLT list.