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Bank of India plans to sell around Rs 900 crore non-performing assets to ARCs

25 Mar 2014 Evaluate

Bank of India is planning to sell around Rs 900 crore of non-performing assets (NPAs) to asset reconstruction companies (ARCs) before the end of March 2014. The bank had auctioned Rs 2,000 crore of NPAs in Q2 and Q3, but only about Rs 627 crore was taken off from the gross NPA level. Meanwhile, the bank expects net interest margins on the international side to improve to 1.20% by March-end, and the combined NIM to 2.72%.

The bank’s gross NPA for the December 31, 2013 quarter of the current fiscal stood at 2.81%, as compared to 3.08% in the same quarter of the previous year. Besides, bank’s Net NPA stood at 1.75% as compared to 1.97% in the same quarter of the previous year.

Bank of India has reported 27.08% fall in its net profit at Rs 585.82 crore for third quarter ended December 31, 2013as compared to Rs 803.48 crore for the same quarter in the previous year. However, total income of the bank has increased by 21.27% at Rs 10866.29 crore for quarter under review as compared to Rs 8959.83 crore for the quarter ended December 31, 2012.

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