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

Bank of India
State-owned Bank of India (BoI) would be able to realise around Rs 19.93 billion 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 19.93 billion. 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 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.

Mohapatra said that Punjab National Bank (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.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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