BoI to shut 400 ATMs, 300 more under review

State-owned Bank of India will shut 400 ATMs to contain costs as part of a turnaround plan.

The rationalisation of ATMs was a step to manage costs without inconveniencing customers, bank executives said.  

Bank of India will also take a decision by the end of February on closing another 300 ATMs. The bank is analysing customer requirements, usage pattern and location before deciding to close down every ATM.

Bank of India has reduced the number of its ATMs from 7,807 in December to 7,717 in April, according to a presentation on the Bank of India website.

Dinabandhu Mohapatra, managing director and chief executive, Bank of India, said the bank was working on a turnaround plan for the last six months following a memorandum of understanding with the government.

“The priority has been controlling costs through steps like rationalisation of branches and ATMs, and rebalancing the loan portfolio by increasing the share of retail loans,” he said.

Bank of India continues to be under stress, with high fresh slippages during 2016-17 and 2017-18. While there was an improvement in recoveries and upgradations, the bank’s gross and net non-performing assets (NPAs) remained elevated. The Reserve Bank of India has put Bank of India under “prompt corrective action”because of its high level of net NPAs, insufficient common equity Tier I capital, and negative return on assets for two consecutive years.

At the end of September, Bank of India’s gross NPAs stood at 12.62 per cent and net NPAs at 6.47 per cent. Its common equity Tier I capital was 7.21 per cent.