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.

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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.

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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.

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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.

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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.

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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.

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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.
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