BoI to take call on raising Rs 2,200-cr capital by year-end

The bank is in a comfortable position and the required capital infusion could be borrowed from the govt

Country's fourth largest state-run lender, Bank of India, will take a call on raising Rs 2,200 crore capital by year-end, according to a top bank official. The bank is in a comfortable position and the required capital infusion could be borrowed from the government, Vijayalakshmi R Iyer, chairperson and managing director, told reporters.

The bank would need Rs 6,000 crore to meet Basel-II and III norms, she added.

BoI has a healthy capital adequacy ratio (CAR) of 11.02 per cent and net NPA (non-performing asset) ratio of 2.06 per cent, and the deposit ratio of the domestic business stood at 66.17 per cent, Iyer said.

Referring to BoI's performance, she said global business was more than Rs 7.24 lakh crore, comprising deposits of over Rs 4.15 lakh crore and advances of Rs 3.09 lakh crore as on June. The bank has set a target of Rs 8 lakh crore business during this financial year, Iyer said.

The bank, with 4,355 branches at present, has aggressive plans for expanding the network and to open 325 branches this financial year. Its total number of ATMs, which is 2,452 at present, would also be increased to 3,890 by March 2014, she said.

On the proposal to open all women's bank, she said BOI has already opened such banks in 44 zones out of 50 and another six would be opened shortly.