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

Bank of India dipped 5% to Rs 172 on the BSE in noon trade after the state-owned bank said that the Reserve Bank of India (RBI) has placed the Bank under Prompt Corrective Action Framework.

“Reserve Bank of India 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,” Bank of India 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, Bank of India 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.