Bank of India is providing 47% on a Rs 1,000 cr loan to Future Retail

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Mumbai: The Bank of India has said it has set aside 47% of its Rs 1,078 crore to Future Retail after the company missed the payment deadline. The bank has said bankers would decide on the course of the recovery action within 10 days of the company submitting its resolution plan.
The Bank of India on Friday reported net profit of Rs.1,027 billion for the third quarter of FY22, up 90% from Rs.541 billion in the corresponding quarter last year. Announcing the results, MD & CEO Atanu Kumar Das said the bank aims to grow its loan book by 8% in the current quarter.
Profits during the quarter would have been higher had it not been for the provision of Rs 6.93 crore for bad and bad assets. This included the provision on the Future Retail account which defaulted. On the recovery plans, General Manager V Anand stressed that the bank had the option to pursue either recovery through assets under the SARFAESI law (Securitization and Reconstruction of Financial Assets and the Enforcement of Securities Interests), bankruptcy proceedings or a one-off settlement.
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 troubled retailer. With both parties interested in a takeover, lenders are hoping for a recovery.
The Bank of India saw its gross advances increase by 5.4% year-on-year while its deposits increased by 10.7%. Global deposits total Rs 6.2 crore while prepayments are Rs 4.4 crore.
During the quarter the bank managed to recover Rs 1,309 crore of non-performing loans while Rs 146 crore of loans were upgraded. It also provided loans of Rs 4,900 crore during the quarter. After adding new slippages of Rs 1,760 crore (including future retail), the Bank’s gross NPAs stood at Rs 45,760 crore compared to Rs 54,997 crore in the corresponding quarter last year.
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