Bank of India (BoI) is planning to sell non-performing assets worth about Rs 250 crore to Asset Reconstruction Companies (ARCs) by the end of the current financial year to clean up its balance sheet. | |
| "We are in the process of passing on package of NPAs to one of the ARCs," BoI chairman and managing director N Narayanasami told reporters. The public sector bank is in talks with two-three ARCs including ARCIL. The bundled assets includes small and large commercial assets. The average size of the account will be Rs 1 crore. Some of the assets have been provided for based on the age of advance and securities available as a collateral, another BoI executive said. |
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| BoI's gross NPAs at the end of December 2007 dipped to 1.90 per cent from 2.74 per cent a year ago. After provisioning the net, NPA were down to 0.62 per cent from 1.14 per cent. |
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| Referring to banks domestic business growth, he said it had crossed Rs 2,00,000 crore by the end of February 2008. The bank will meet the credit and deposit growth targets set for 2007-08. |
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| The deposits rose by 27.4 per cent to Rs 1,35,835 crore. The share of low cost deposits (savings and current account) dipped to 37 per cent as against 41 per cent in the year-ago period. |
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| The advances grew by 29.86 per cent to Rs 1,03,656 crore at the end of December 2007. The yield on advances went up from 8.43 per cent to 9.58 per cent. |
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