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Bank of India falls 5% as RBI puts bank under Prompt Correction Framework

Bank of India said this action will contribute to the overall improvement in risk management, asset quality, profitability, efficiency, etc of the Bank

SI Reporter  |  Mumbai 

Bank of India, BOI
Bank of India

dipped 5% to Rs 172 on the BSE in noon trade after the state-owned bank said that the Reserve (RBI) has placed the Bank under Prompt Corrective Action Framework. “Reserve vide their letter dated December 19, 2017, has placed the Bank under Prompt Corrective Action Framework, consequent to the onsite inspection under the Risk Based Supervision Model carried out for year ended March 2017, and the report issued thereof,” said in a statement. This is in view of high net NPA, insufficient CET1 Capital and negative ROA for two consequent years, it added. This action will contribute to the overall improvement in risk management, asset quality, profitability, efficiency, etc of the Bank, said. At 02:43 PM; the stock was trading 4% lower at Rs 174 on the BSE, as compared to 0.16% rise in the S&P BSE Sensex.

A combined 3.6 million shares changed hands on the counter on the BSE and NSE.

First Published: Wed, December 20 2017. 14:45 IST
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