Bank of India(BOI) Q2 results: Net profit up 7.62%

Due to lower lending costs, public sector lender Bank of India (BOI) announced a 7.62% year-over-year increase in net profit to ₹2,555 crore for the July–September 2025 quarter (Q2FY26) on Friday. 

The shares of the Mumbai-based lender closed at ₹123.30 per share on the BSE, a 1.67 percent decrease. In Q2FY26, its net interest income (NII) decreased by 1.24 percent to ₹5,912 crore, from ₹5,986 crore in Q2FY25, the same quarter that ended in September 2024. 

 Net interest margin (NIM) decreased from 2.81 percent in Q2FY26 to 2.41 percent in Q2FY26, a 40 basis point year-over-year (Y-o-Y) decrease.

The managing director and CEO of BOI, R Karnatak, stated that a decrease in provisions for bad loans was the reason for the improvement in net earnings. After the deposit repricing is finished in the second half, the NII ought to start to get better. 

Customers have already received the repo rate reductions. In Q2FY26, the bank's non-interest income—which includes treasury, fees, commissions, etc.—dropped by 12% year over year to ₹2,220 crore. The profit from treasury operations, such as the sale and revaluation of investments, fell from ₹730 crore in Q2FY26 to ₹314 crore in Q2FY26, a 57% decline. 

 Following the results, Karnatak stated in a virtual media exchange that the bank did not experience much treasury income in the third quarter due to the current state of the market.

In Q2FY26, the credit costs, also known as provisions for non-performing assets (NPAs), dropped significantly to ₹472 crore from ₹1,427 crore in the previous year. In Q2FY26, advances increased 14.03 percent year over year to ₹7.09 trillion. 

 In the September quarter of FY26, advances to MSME, retail, and agricultural climbed 17.02 percent year over year to ₹3.47 trillion. According to Karnatak, the second half of the fiscal year is anticipated to see a strong credit offtake, including over the holiday season. A credit pipeline of ₹70,000 crore in corporate, retail, and agricultural loans has been approved. 

 At ₹8.53 trillion, total deposits grew 10.08 percent year over year. At the end of September 2025, the percentage of low-cost deposits, or current accounts and savings accounts (CASA), fell from 41% to 40%.

Gross non-performing assets (NPAs) decreased from 4.41 percent in September 2024 to 2.54 percent in September 2025, indicating an improvement in the bank's asset quality. Additionally, net non-performing assets (NPAs) decreased from 0.94 percent in September 2024 to 0.65 percent in September 2025.

 In September 2025, the provision coverage ratio (PCR), which takes into account written-off accounts, increased from 92.22 percent to 93.39 percent. At the end of September 2025, the bank's capital adequacy was 16.69%, with Common Equity Tier-1 capital at 14.49%.

Read More

ED has arrested a Bank of India(BoI) officer in a fraud case for Rs 16.10 crore

In accordance with the Prevention of Money Laundering Act, 2002 (PMLA), Hitesh Kumar Singla, an officer of Bank of India, was taken into custody by the Directorate of Enforcement (ED), Mumbai, from Ahmedabad Junction Railway Station. Bank of India had previously suspended the officer. 

 After his appearance before the Greater Bombay Special PMLA Court, he was given seven days of ED detention. Under Sections 13(1)(a) and 13(2) of the Prevention of Corruption Act, 1988, Section 409 of the Indian Penal Code, and Section 316(5) of the BNS, the CBI had brought a case against Singla and Others.

As the case involved money laundering, it was transferred to ED and ED started its investigation.

Investigations revealed that between May 2023 and July 2025, Singla fraudulently closed multiple accounts—including Term Deposits (TDs), Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), Savings Bank (SB), and Current Accounts (CA)—without authorization. The funds were then diverted to his personal SBI savings accounts.

According to the ED, Singla deliberately targeted 127 account holders, mostly vulnerable customers such as senior citizens, minors, deceased persons, and dormant account holders, to avoid detection.

The diverted funds were layered and transferred in small, concealed transactions, causing a total loss of ₹16.10 crore to Bank of India and its customers, while severely damaging the bank’s reputation and public trust.

Singla had been evading the bank and not reporting since the crime was discovered. At Ahmedabad Junction, ED apprehended him based on technical surveillance and intelligence inputs. He was detained despite his repeated attempts to avoid detection by switching carriages and seats on Train No. 19320 Mahamana Express (Ujjain–Veraval).

Read More

CBI Investigates ₹121 Crore Fraud in Gujarat, Complaint lodged by BOI

Three sites in Ahmedabad and Gandhinagar have been searched by the CBI in relation to a ₹121 crore bank scam involving the city-based company Anil Bioplus. Incriminating documents were seized as a result of the Wednesday raids. 

The CBI has charged the firm and its directors, Amol Shripal Sheth, Darshan Mehta, and Nalin Thakur, in response to a complaint filed by the Bank of India. 

 Based on a complaint received from Bank of India against M/s. Anil Bioplus Ltd., a private company based in Ahmedabad, its three directors—Amol Shripal Sheth, a full-time director; Darshan Mehta, a full-time director; and Nalin Thakur, a director—as well as unidentified public employees and other unidentified individuals, the Central Bureau of Investigation (CBI) opened a case on September 8, 2025.

The lawsuit alleges that the directors of a private company situated in Ahmedabad conspired with unidentified Bank of India personnel with the malicious purpose to cause the bank to suffer an unjustified loss of Rs. 121.60 crores.

Read More

Big Fraud of Rs.1,396 Crore Fraud in Bank of India(BOI) and Other Banks

On August 30, 2025, the Shimla-based Directorate of Enforcement (ED) conducted search operations in Bhubaneswar, Odisha, as part of a large-scale bank fraud and money laundering case involving M/s Indian Technomac Company Ltd (M/s ITCOL). In addition to the business establishments of M/s Anmol Mines Pvt. Ltd. (AMPL) and M/s Anmol Resources Pvt. Ltd. (ARPL), the searches were carried out at the residence of Shakti Ranjan Dash, Managing Director of these companies. The action was carried out in accordance with the Prevention of Money Laundering Act (PMLA), 2002.

The Himachal Pradesh Police CID filed a formal complaint (FIR) alleging that M/s ITCOL's directors conspired with corporate officials and chartered accountants to embezzle bank loans approved by a group of banks. According to ED findings, M/s ITCOL submitted fabricated project reports and displayed fictitious sales to dummy/shell firms in order to fraudulently obtain loans from a consortium managed by the Bank of India between 2009 and 2013. The loans were diverted elsewhere rather than being used for approved reasons. The estimated value of the suspected scam is ₹1,396 crore.

The ED had already seized assets totaling ₹310 crore in April 2025, of which ₹289 crore had been returned to the group of banks headed by Bank of India. According to the most recent inquiry, M/s ITCOL and its shell companies transferred ₹59.80 crore into M/s Anmol Mines Pvt. Ltd.'s (AMPL) bank accounts. The managing director of AMPL, Shakti Ranjan Dash, has been charged by the ED with willfully aiding Rakesh Kumar Sharma, the founder of M/s ITCOL, in money laundering by directing cash into mining operations in Odisha.

Investigators found that Shakti Ranjan Dash subsequently integrated the diverted money into AMPL’s accounts and recorded it as legitimate business income, thereby attempting to project “proceeds of crime” as clean money.

During the Bhubaneswar raids, the ED seized many luxury vehicles, cash,jewellery and property. Two lockers belonging to Dash were also frozen.

The ED confirmed that the seized assets belong to Shakti Ranjan Dash and his associated companies. Officials emphasized that the investigation is ongoing and further action will follow as evidence is scrutinized.

Read More

BOI Classifies Loan Account of Reliance Communications as ‘Fraud’

 

Reliance Communications Limited, its promoter and former director, Shri Anil Dhirajlal Ambani, and its former director, Smt. Manjari Ashok Kacker, have had their loan accounts classified as "fraud" by Bank of India.

The Bank of India has also decided to label the loan accounts of RTL (the company's subsidiary), Smt. Grace Thomas (the former director of RTL and current director of the company), and a few other individuals (named in the RTL Letter) as "fraud." This decision was communicated in a letter to Reliance Telecom Limited (RTL), a subsidiary of the company.

Bank of India approved a 700 crore rupee term loan. As of 07/08/2025, there were 724.78 crores that were still owed. The loan was approved to cover a short-term discrepancy brought on by investments made in the purchase of 3G spectrum and associated capital expenditures. There was no guarantee when the loan was approved.

On June 30, 2017, the borrower's account became non-performing, with Rs 724.78 crores still owed. Although the Bank has been pursuing the borrowers and guarantors to collect the debt, they have not fulfilled their obligations.

Through M/s BDO India LLP, the bank carried out a forensic audit after the account became non-performing. The appropriate authority was presented with the results of the forensic audit. The following observations, findings, and conclusions of the forensic audit have led the competent authority to conclude that there are suspected fraudulent connotations after reviewing the audit:

In accordance with the review letter, Bank of India paid RCOM INR 350.00 Crores in a letter dated October 3, 2016, for "ongoing Capital exp, operational expenditure, repayment of existing liabilities other than related party / shareholder loans."

Loan Diversion: Fixed deposits totaled INR 350.00 crores.

A loan of Rs. 350 Cr was raised by the BOI on March 27, 2015, to cover spectrum fees. MF held the loan amount until April 7, 2015.A loan of Rs. 310.00 Cr was raised by SCB on March 30, 2015. FD was made on April 7, 2015, for a total of Rs. 632.50 Cr (BOI Rs. 350 Cr + SCB Rs. 310 Cr). RCOM obtained an equivalent loan of Rs. 632.50 Cr from BOI in order to pay the DOT Government of India for the Spectrum fees in relation to the aforementioned FD.

FD was liquidated on June 11, 2015, and the Rs. 632.50 Cr BOl loan was paid back. The payment of operational expenses was made with the full amount of the BOI loan.

The sanction letter stated that using the loan funds to invest in fixed deposits was prohibited; therefore, this is regarded as non-compliance with sanction terms of the loan.

Borrower requested that the company is undergoing Corporate Insolvency Resolution Process (CIRP) and thus the account should not be classified as Fraud.

Read More

Bank of India(BOI) eyes listing of mutual fund, life insurance arms

Like other public sector banks like State Bank of India and Canara Bank, which have either investigated or started IPO plans for their subsidiaries, Bank of India (BOI) is thinking about offering its mutual fund and life insurance divisions as the initial candidates for possible market listing.

“We do see our mutual fund and insurance subsidiaries as the most likely to be off the block when the time is right,” said Rajneesh Karnatak, MD & CEO of Bank of India. “But not in this financial year. Our focus right now is on growing these platforms organically, expanding distribution, and ensuring they are strategically aligned with our core banking business.”

Public sector banks (PSBs) were asked by the finance ministry in June of this year to consider listing their subsidiaries on stock exchanges in order to generate revenue from their investment after further expanding their business activities. Before entering the capital markets, BOI is adopting a more methodical strategy, giving scale and value first priority. 

 As of July 2025, 7,62,969 investor folios across 20 equity, hybrid, and debt funds totaled Rs 13,183 crore under managed of BOI Mutual Fund, a wholly owned subsidiary of BOI. The life insurance division of BOI owns a 27.5% share in Star Union Daiichi. The life insurance generated Rs 8,033 crore in net premium income for FY25.

As of July 2025, the life insurance firm held a 3.25% market share among private insurers based on first premiums. Our subsidiaries are strategic levers that enhance our core banking operations and enable us to provide our clients with a full-spectrum financial ecosystem; they are not merely supplementary enterprises. 

 Life insurance and mutual funds are essential components of our client interaction approach and cross-selling strategy, Karnatak stated. In order to unlock short-term value, we are not in a haste to list these subsidiaries. Our priorities are increasing distribution, boosting operational metrics, increasing profitability, and foremost creating embedded value. We will think about listing the companies if we get to a point where they are established and scalable," he continues.

Read More

Bank of India(BOI) Q1 result: Net profit soars 32.2% YoY

 

The public sector lender Bank of India (BOI) reported a 32.3 per cent year-on-year rise in net profit to ₹2,252 crore for the April–June quarter (Q1FY26), aided by a surge in treasury income.

Its Net Interest Income (NII) shrank by 3.3 per cent to ₹6,068 crore in Q1FY26, compared to ₹6,275 crore in the same quarter a year ago (Q1FY25). Net interest margin (NIM) declined by 52 basis points YoY to 2.55 per cent in Q1FY26 from 3.07 per cent in Q1FY25.

R. Karnatak, Managing Director and Chief Executive Officer, BOI, said there will be some additional pressure on margins in the second quarter. The repricing of deposits, which began in October 2024, will be completed by October, providing a benefit for margins. He stated that margins have bottomed out but did not give estimates for NIM.

 

The bank’s non-interest income, comprising treasury, fees, commissions, etc., grew by 66.4 per cent YoY to ₹2,166 crore in Q1FY26. Profit from treasury activities, including the sale and revaluation of investments, grew almost four times to ₹820 crore in Q1FY26 from ₹166 crore a year ago.

Provisions for non-performing assets (NPAs) declined to ₹1,104 crore in Q1FY26, down from ₹1,216 crore in Q1FY25.

 

Advances grew 12.02 per cent YoY to ₹6.72 trillion in Q1FY26. Retail, agriculture, and MSME advances grew by 16.27 per cent YoY to ₹3.28 trillion in the June quarter of FY26.

Total deposits increased 9.07 per cent YoY to ₹8.33 trillion. The share of low-cost deposits—current accounts and savings accounts (CASA)—declined to 39.88 per cent at the end of June 2025, down from 42.68 per cent a year ago. The bank has guided for 10-11 per cent growth in deposits in FY26.

 

The bank’s asset quality improved, with gross NPAs declining to 2.92 per cent in June 2025 from 4.62 per cent in June 2024. Net NPAs also declined from 0.99 per cent in June 2024 to 0.75 per cent in June 2025. The provision coverage ratio (PCR), including written-off accounts, improved to 92.94 per cent in June 2025 from 92.11 per cent in June 2024.

Read More

CBI arrests proclaimed offender in historical bank fraud case involving Rs 5.69 lakh at Bank of India(BOI)

Satish Kumar Anand, who was designated a Proclaimed Offender in a bank fraud case involving ₹5.69 lakh from Bank of India, has been taken into custody by the Central Bureau of Investigation (CBI). The case began on May 5, 1978, when the CBI filed a complaint against three individuals:

1. The Branch Manager of a Bank of India branch
2. Satish Kumar Anand
3. Ashok Kumar

CBI alleged that the branch manager and Satish Kumar Anand worked together in a criminal conspiracy to cheat the bank.

• The bank manager, while working at the branch in 1977, sanctioned a loan to a private company.
• The loan was given based on fake receipts and false bills, showing goods had been sent out, when in reality, no such shipment took place.
• As a result, the bank lost ₹5.69 lakh, and this amount wrongfully benefited Satish Kumar Anand.

After investigating, CBI filed a chargesheet in the Special CBI Court in Dehradun.

• In 1985, the court convicted Satish Kumar Anand and Ashok Kumar, sentencing both to 5 years of rigorous imprisonment and a fine of ₹15,000.
• The bank manager was acquitted (found not guilty).

How Did Satish Kumar Anand Become a Proclaimed Offender?

After being convicted, Satish Kumar Anand disappeared and did not serve his jail sentence. The CBI Court in Dehradun, on 30 November 2009, officially declared him a Proclaimed Offender, which means he was legally marked as an absconder.

After years of being on the run, CBI arrested Satish Kumar Anand on 25th June 2025. He will now be presented before the Special CBI Court in Dehradun, where further legal action will be taken.

More details will be released soon.

Source -hellobanker.in

Read More

Supreme Court opens FIR Against Bank of India(BOI) in Gold Loan Case

A businessman obtained a loan from the Bank of India's Motijhil Branch in order to obtain the money he needed. On July 22, 2020, he was granted a loan of ₹7,70,000 after pledging 254 grams of 22 carat gold pieces as security. The payback of this loan is the point of contention. 

The appellant claims that after receiving a notification from the bank on October 7, 2022, requesting payment of ₹8,01,383.59, including interest, he paid the amount on March 31, 2023. He was unaware that the bank had revalued the gold he had pledged and had taken ₹1500 out of it for expenses.

His requests to return the gold that had been committed were denied for years. However, the bank claims that he failed to repay the loan, which is why the gold became a bank asset. 

 When it was purportedly reported by a valuer other than the one who had initially assessed the appellant's gold at the time of the loan that the material pledged was not gold in reality but rather gold plated on top of other metals, the aforementioned gold was revalued in order to recover the money involved in the transaction and was discovered to be counterfeit.

Additionally, the appellant filed a formal complaint against the bank's branch and credit manager for violations of Sections 420, 406, and 34 of the Indian Penal Code. 

The Patna High Court granted the respondent's (bank manager's) request to have the FIR quashed. A Special Leave Petition (SLP) has been submitted in response to this. The FIR against the bank has now been reopened by the Supreme Court.

Court Order

A bench of Justice Sanjay Karol and Justice Manoj Misra said that the High Court had looked at the bank’s policy to prevent and detect fraud and also considered the removal of the first valuer. 

Based on this, the High Court concluded that the bank had no bad intentions. It also said that the person who filed the case (the appellant) had tried to get a loan from the bank with bad intentions.

However, the judges of the Supreme Court stated that they were unable to comprehend how the High Court arrived at this result because genuine evidence is necessary to determine someone's purpose. They further questioned how, in the absence of evidence, the High Court determined that the applicant had a hidden motivation. 

 The Court added that there's still a chance the bank misappropriated money. When the High Court dismissed the FIR (police report), it failed to adequately take this into account. Furthermore, the bank failed to have a third party confirm the second valuer's findings. 

 Therefore, it is impossible to say with certainty that nobody from the bank or the valuers did anything improper with the gold that the appellant pledged without considering all of the available evidence.

Read More

Fraud found in PSB & Private Banks as per AIBEA data

 EFFICIENCY PARAMETER OF BANKS BASED ON NO. OF FRAUDS REPORTED

Read More

Attack on the Bank of India(BOI) Loan Recovery Team

A Bank of India team was violently attacked in Farrukhabad during what should have been a routine debt recovery exercise, underscoring the increasing difficulties that bank officers occasionally experience in the course of their work. In a matter of minutes, the normally tranquil environment around the Sai Dham Temple at Panchal Ghat descended into chaos.

Under the direction of the branch manager, the bank's debt recovery team had gone to collect a pending loan balance of about ₹4 lakh from a local borrower. Avnish, a PRD jawan and inhabitant of Rakabganj Khurd in the Maudarwaja area, accompanied the squad. During the visit, he was responsible for maintaining order and ensuring security. But things didn't work out as expected. People who were thought to be the borrowers who had refused to pay the debts confronted the crew as they got closer to the scene. A startling change in circumstances ensued. Avnish was allegedly grabbed by the accused and beaten. The bank manager and other team members had to leave the area in their car since the situation rapidly got out of hand.

Avnish was later taken to the hospital for medical examination. The police station under whose jurisdiction the incident falls—Qadri Gate police station—has registered the case and launched an investigation. Preliminary statements from Avnish suggest that the accused deliberately attacked the team to avoid repaying the loan.

This incident raises serious concerns about the safety of bank officials and staff engaged in fieldwork, especially in loan recovery. Bank personnel are increasingly facing resistance, and sometimes violence, while performing their duties. Though they operate within legal frameworks, such situations pose not only a professional hazard but a personal one too.

The case also sheds light on the need for better support mechanisms and legal protection for recovery agents and officers. It emphasizes the importance of ensuring the safety of those working on the frontlines of the financial system.

Authorities have assured that strict action will be taken against the accused. In the meantime, this incident should serve as a wake-up call for financial institutions to review their recovery strategies and for law enforcement to provide necessary backup when required.

Loan default is a serious issue—but violence is never the answer. Respecting the rule of law and engaging in peaceful resolutions must always be the priority, both for banks and for borrowers.

Read More

LIC increases its stake in Bank of India(BOI) to 8.38%.

As of May 9, 2025, the Life Insurance Corporation of India (LIC) now owns 8.38% of Bank of India (BoI). In a regulatory statement to the stock exchanges on Tuesday, Bank of India provided this update. Over the course of almost four years, LIC has acquired an additional 2.026% share in Bank of India. 

 The purchase activity occurred from September 2, 2021, until May 9, 2025. LIC owned 6.35% of the public sector bank prior to this rise. Its overall position has now increased to 8.38% as a result of the latest acquisitions. This action demonstrates LIC's ongoing desire to solidify its place in the Indian public sector banking market.

Impact on Bank of India Shares

Following the disclosure, shares of Bank of India saw a positive response in the market. The stock closed at ₹112.55 on the Bombay Stock Exchange (BSE), which is a 2.27% rise compared to the previous trading day

Why This Matters

LIC is India’s largest institutional investor and plays a significant role in the Indian financial market. When LIC increases its stake in a company, it is often seen as a positive sign of confidence in that company’s performance and future growth.

This increase in LIC’s stake could signal strong trust in the stability and growth of Bank of India, which is one of the major public sector banks in India.

Read More

Axis Bank Manager Arrested in Bank of India(BoI) Loan Takeover Case for Rs 2.20 Crore Fraud

Rahul Patel, the branch manager of Axis Bank's Vesu branch, has been charged with fraud by the Athwalines police for allegedly defrauding Bank of India of Rs 2.20 crore by failing to turn over mortgage paperwork during a loan transfer. 

Police say the branch manager of Bank of India's Ghoddod Road branch made the allegation. The issue concerns Siddhi Dasani, who owned Shri Anand Impex in Kadodara and had a Rs 2.20 crore cash credit account with Axis Bank. 

Siddhi approached the Chauta Pul branch of Bank of India to assume the current loan because of the exorbitant interest rates.

A portion of the Rs 7.45 crore fresh loan that the Bank of India approved once all formalities were finished was used to pay off the outstanding balances at Axis Bank.  

Rahul Patel allegedly neglected to shut the previous loan account and provide Bank of India with the original mortgage property paperwork, which are necessary for these loan takeovers, even after receiving the money.

Unexpectedly, Siddhi and her husband, Uttam Dasani, allegedly took money out of the Axis Bank account even after the settlement was reached and then stopped making payments to the Bank of India.  The Axis Bank manager's inaction contributed to this chain of events, which caused Bank of India to suffer a financial loss and call the police.

For willful misconduct and fraud, authorities have filed a First Information Report (FIR) against Rahul Patel. They claim that Patel purposefully concealed important documents, allowing the Dasanis to abuse the system.

Read More

Bank of India(BoI) Q4 Net profit jumps 82% YoY

 

Bank of India(BoI) on Friday, May 9, reported its March quarter earnings, in which net profit rose 82.5% year-on-year to ₹2,626 crore, compared to ₹1,439 crore in the same quarter a year ago.

The bank's Net Interest Income (NII) or core income rose 2.1% to ₹6,063 crore as against ₹5,936 crore in the year-ago quarter.

The company's asset quality also improved, with Gross Non-Performing Assets (NPA) declining to 3.27% from 3.69%, and Net NPA reducing to 0.82% from 0.85% last year.

Bank of India recommended a dividend of ₹4.05 (40.50%) per equity share of ₹10 face value for the financial year 2024-25, subject to approval of shareholders at the ensuing Annual General Meeting of the Bank.

Record date for the said dividend has been fixed as June 20, 2025. Hence, shareholders having shares as on the cut-off date i.e. June 20 will be eligible for the dividend payment.

Read More

Rs 10 crore fraud in Bank of India(BOI), Senior Bank Officer Sent to Jail

Three people were sentenced to five years in prison by a special Central Bureau of Investigation (CBI) court for defrauding Bank of India out of Rs.10.27 crore in a significant decision. In the case, which began in April 2012, a businessman, a senior bank official, and an intermediary forged paperwork in order to obtain credit from the bank without authorization.

The court also imposed severe financial penalties in addition to the jail sentence. The middleman received a fine of Rs.30 lakh, the banker Rs.15 lakh, and the businessman Rs.8 crore.

Case Registered in 2013 by CBI

The CBI’s Economic Offences Wing registered the case on February 2, 2013. Those named in the case included:

• Nikhil Patt, a businessman
• Damodar Kamath, then senior manager (credit) at Vijaya Bank
• Sooraj Tayade, an agent
• Four other accused, including two who are still absconding, one who passed away during the trial, and one who was acquitted due to lack of evidence.

How the Bank Fraud Happened

The complaint came from the Deputy Zonal Manager of Bank of India’s Mumbai North Zone. According to the investigation, the fraud was carried out using fake Letters of Credit (LCs) – financial instruments banks use to guarantee a buyer’s payment to a seller.

Kamath, the bank manager, issued four such fake LCs worth a total of Rs.10.27 crore. Here’s how the LCs were misused:

• Two LCs worth Rs.7.25 crore were issued in the name of Madhav Trading Corporation, a company owned by Nikhil Patt.
• One LC was issued to Siddhi Graphics, owned by Sameer Shah.
• The fourth LC was in the name of Parmar Trading Corporation, owned by Chandrakant Desai.

Shah and Desai are still on the run.

Misuse of Funds

Once the fake LCs were processed, a Bank of India officer named T. Gopala verified and cleared them. The money was then credited to the accounts of the three companies involved.

However, the money was not used for any business purpose. Instead, it was transferred across different accounts and withdrawn in large amounts by the accused.

The investigation revealed that out of the Rs.10.27 crore:

• Rs.1.02 crore was transferred from Madhav Trading Corporation to Suraj Kumar Trading, a company owned by Sooraj Tayade.
• Another Rs.15 lakh was directly transferred to bank manager Kamath, suggesting his active role in the fraud.

This case is a serious example of how banking frauds can affect public financial institutions. The court’s decision sends a clear message: those who misuse their position and cheat the banking system for personal profit will face strict legal consequences.

Read More

The CBI opened a criminal probe into the Rs 12.08 crore Bank of India fraud

 

Five officials of a private construction company are the subject of a criminal probe by the Central Bureau of probe (CBI). These officers are charged with defrauding the Bank of India, resulting in a ₹12.08 crore loss. 

 The executives allegedly broke key terms of the loan arrangement and misappropriated the bank's loan funds, according to CBI sources. After a complaint was submitted by the deputy general manager of the Bank of India's Asset Recovery Management Branch in Andheri West, the case became public knowledge. The CBI began its investigation as a result.

The Bank of India claims that the construction firm and its directors defrauded the bank by not depositing the sale proceeds from flats and shops in its Navi Mumbai real estate projects, as required by the loan agreement. 

The bank’s complaint states that instead of following the terms, the firm sold the properties without obtaining the necessary No Objection Certificates (NOCs) from the bank, which is a key condition.

The CBI has filed the case under sections of the Indian Penal Code and the Prevention of Corruption Act. These charges include criminal conspiracy, cheating, misappropriation of funds, and diversion of funds. 

According to the complaint, the bank’s loss due to this fraud was estimated to be ₹12.08 crore, as of December 2021. The CBI will investigate the bank’s credit transactions with the firm from July 2013 to December 2021, which were used to finance the company’s construction projects in and around Navi Mumbai.

The bank claims that according to the loan’s terms, the construction firm was supposed to obtain NOCs from the bank before selling any of the flats or shops in their projects. Additionally, the sale proceeds were supposed to be deposited with the bank. However, the firm failed to comply with these conditions, as stated in the bank’s complaint.

Loan Account Classified as Non-Performing Asset

The firm’s loan account was marked as a non-performing asset (NPA) on March 31, 2016, following standard banking procedures. Later, a demand notice was issued under the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act, 2002. The loan was also officially classified as “fraud” in September 2024 by the Competent Authority, in line with a Supreme Court ruling from 2023.

The CBI’s investigation is continuing as it looks into the full extent of the financial wrongdoing and the involved officials’ roles in the matter.

Read More

Bank of India(BOI) Shuts 400 Day Special FD Scheme, Cuts FD Interest Rates After Repo Rate Cut

 

Bank of India (BOI) has announced a key update for its fixed deposit (FD) customers in which the bank has withdrawn its special 400-day fixed deposit scheme that offered an attractive interest rate of up to 7.30%. Alongside this, Bank of India has revised interest rates across various FD tenures. These new rates will be effective from April 15, 2025.

Bank of India new FD interest rates For fixed deposits less than Rs. 3 crore, the updated Bank of India FD interest rates are as follows:

91 days to 179 days: 4.25% 

180 days to less than 1 year: 5.75% 

1 year: 7.05% 

Above 1 year to 2 years: 6.75%

The rates remain competitive, especially for bulk deposits, though slightly lower than previous offerings. This aligns with other public sector banks following the RBI repo rate cut in early April 2025. Additional Interest for Senior and Super Senior Citizens To cater to senior citizens, Bank of India continues to offer preferential interest rates

The rates remain competitive, especially for bulk deposits, though slightly lower than previous offerings. This aligns with other public sector banks following the RBI repo rate cut in early April 2025. 

Additional Interest for Senior and Super Senior Citizens To cater to senior citizens, Bank of India continues to offer preferential interest rates

Senior Citizens (below ₹3 crore): Additional 0.50% interest on FDs of 6 months & above

Super Senior Citizens: An Additional 0.65% interest on the same tenure These benefits make BOI fixed deposits for senior citizens a relatively attractive savings option despite the overall rate reduction.

Read More

BOI to Absorb Full Perquisites Tax After FBOIOA’s effort

 In a major relief for its employees, the Bank of India (BOI) has decided to absorb 100% of the perquisites tax liability arising from concessional and interest-free loans provided to staff members. The move comes after persistent efforts by the Federation of Bank of India Officers' Association (FBOIOA).

Bank of India absorbs full perquisites tax after Federation of Bank of India Officers’ Association’ s push. Relief granted, setting a strong precedent for employees rights advocacy.

The decision is set to benefit nearly 53,000 BOI employees, offering much-needed financial relief.

The Federation of Bank of India Officers’ Association (FBOIOA) played a decisive role in ensuring this breakthrough, spearheading relentless negotiations and sustained advocacy. Over three months of persistent representations and high-level dialogues, the association successfully convinced the management to implement this employee-friendly decision, shielding the workforce from an unexpected financial burden.

In an exclusive conversation with Nilesh Pawar, General Secretary of FBOIOA, lauded the move, stating, “The decision to completely absorb the perquisites tax liability is a significant boost to employee dignity and financial security.” 

Highlighting the urgency of the demand and its resolution, he added, “The tax deductions, which began in January 2025, drastically reduced salaries, leaving employees with nominal pay—sometimes as low as a few hundred or thousand rupees. This triggered widespread distress. To counter the impact, FBOIOA launched ‘Sahayya,’ a special interest free advance of Rs 50,000 offering immediate relief to affected officers.”

According to FBOIOA, over 1,400 officers received less than ₹20,000 as salary for February 2025, with some even facing nil salary credits after tax deductions—causing severe financial distress.

Bank of India is now the fourth Public Sector Bank to fully absorb the perquisites tax, following State Bank of India, Union Bank of India, and Bank of Baroda. In contrast, Punjab National Bank opted to bear only 50% of the liability.

Bank of India's decision follows sustained efforts by FBOIOA to address the tax burden on employees, aligning with similar measures taken by other public sector banks.

Read More

FBOIOA launches ‘Sahayya’ scheme to provide interest-free financial assistance to officers

 

A unique relief program called "FBOIOA Sahayya" has been launched by the Federation of Bank of India Officers' Associations (FBOIOA) to provide interest-free financial aid to officers who have had their salaries drastically reduced as a result of perquisite tax deductions. The program's goal is to give officers who had significant tax deductions in February 2025 and whose net salary was less than Rs.20,000 instant financial support.

Public sector banks have recently started taxing the perks that officers are provided. Benefits offered to bank employees include low-interest loans. For instance, the average person's car loan interest rate is 9%. Bank employees receive a 5.5% loan rate.

Because bank employees pay low interest rates, they can save money on loans, which is considered advantageous. Bank workers are now required to pay taxes on this perquisite. This indicates that tax will be paid on the amount that differs because of the different interest rates. If the general public pays Rs. 1000 in interest on a car loan while bank employees pay Rs. 700, the bank employees must pay tax on the Rs. 300 difference.

Financial distress resulted from the Bank of India's officers receiving drastically reduced or no pay in February 2025. Nearly 1,400 officers reportedly have net salary credits of less than Rs. 20,000 as a result of high tax deductions applied by the bank.

In response, the FBOIOA has been negotiating with bank management to find a long-term solution. However, to offer immediate relief, the federation has launched this interest-free advance scheme for affected officers.

Who is eligible for the scheme?

To apply for financial assistance under the Sahayya scheme, an officer must meet the following criteria:

* Must be an active FBOIOA member.

* Net salary for February 2025 should be below Rs.20,000, primarily due to perquisite tax deductions.

* Application process and required documents

* Eligible officers need to submit an application form (Annexure-1) through their Unit General Secretary along with the following documents:

1. A copy of the February 2025 salary slip showing a net salary below Rs.20,000.

2. Five post-dated cheques (PDCs) of Rs.10,000 each, drawn in favor of the respective unit.

Deadline for application submission: March 7, 2025.

Disbursement and repayment of financial assistance

Under the FBOIOA Sahayya scheme, officers will receive ₹50,000 as an interest-free financial advance, which will be disbursed in two equal installments:

Rs.25,000 as the first installment upon approval of the application.

Rs.25,000 as the second installment in the following month.

The repayment will begin from May 2025, with officers required to repay the total amount in five equal monthly installments of Rs.10,000 each.

Federation’s commitment to officer welfare

The FBOIOA has assured officers that discussions with bank management are ongoing to prevent such financial distress in the future. While the Sahayya scheme serves as a short-term relief measure, the federation remains committed to finding a long-term solution for perquisite tax deductions affecting officers’ salaries.

Officers facing financial difficulties are encouraged to apply for the scheme before March 7, 2025, to avail of this support.

Read More