Bank of India makes 47% provision on Rs 1k cr loan to Future Retail

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Mumbai: Bank of India said it provisioned 47% of its Rs 1,078 crore to Future Retail after the company missed the payment deadline. The bank said the course of the recovery measures would be decided by the bankers in 10 days, after the company comes back with its resolution plan.
Bank of India on Friday announced a net profit of Rs 1,027 crore for the third quarter of FY22, up 90% from Rs 541 crore in the corresponding quarter of last year. Announcing the results, Managing Director and CEO Atanu Kumar Das said the bank aimed to increase its loan portfolio by 8% in the current quarter.
Earnings in the quarter would have been higher had it not been for a provision of Rs 693 crore for bad and doubtful assets. This included the provision on the Future Retail account, which defaulted. On recovery plans, V Anand, Managing Director, highlighted assets, said the bank has the option to pursue recovery through assets under SARFAESI (Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act), an insolvency proceeding or a single proceeding. settlement.
The lenders have an exposure of over Rs 10,000 crore to Future Retail. Reliance Group and Amazon are currently in a legal battle to acquire the struggling retailer. With both parties wanting an acquisition, the lenders are hoping for a takeover.
Bank of India recorded a 5.4% increase in its gross advances year on year, while its deposits increased by 10.7%. Global deposits stand at Rs 6.2 lakh crore, while advances are at Rs 4.4 lakh crore.
During the quarter, the bank managed to recover Rs 1,309 crore of bad debts, while Rs 146 crore of loans were upgraded. It also fully provisioned Rs 4,900 crore in loans during the quarter. After adding further slippages of Rs 1,760 crore (including Future Retail), the bank’s gross NPA stood at Rs 45,760 crore from Rs 54,997 crore in the corresponding quarter last year.
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