Indian government-owned Bank of India plans to put stressed assets worth Rs 30,000 crore (around $4,280 million at current exchange rate) up for sale to asset reconstruction companies (ARCs) as part of its efforts to recover bad loans.
This number is almost double that of around Rs 17,000 crore worth of stressed assets put up for sale in financial year 2018-19. Of these, the bank managed to sell assets worth around Rs 4,000 crore to recover around Rs 1,774 crore.
"For all National Company Law Tribunal (NCLT) cases, the bank has provided 100% and now write-back is visible, which will further aid profitability and we will be in a strong position going forward," said Dinabandhu Mohapatra, managing director and chief executive officer of Bank of India.
Bank of India has a total of Rs 31,900 crore worth of stressed assets under the Insolvency and Bankruptcy Code.
The bank’s bottom line was back in black in the fourth quarter of 2018-19 with a net profit of Rs 251.8 crore as compared with a loss of Rs 3,969 crore a year earlier.
On the stock market, the bank’s shares ended at Rs 81.6 apiece, up 1.94% higher from its previous close.