Bank of India: Rs 70-bn NPA recovery may not move the needle much in Q4

Provisions required under new NPA rules may offset gains on recovery front, therefore, experts suggest that investors keep away from PSBs for now

Shares of Bank of India, which are down a third since the fraud at Punjab National Bank was reported (February 14), an event that hit other public sector banks (PSBs) too, surged 15 per cent before closing 7.4 per cent up on Tuesday. Reports of the bank recovering non-performing assets (NPAs) worth Rs 70 billion was the key reason for this surge. "We (BOI) have recovered around Rs 70 billion, which will reflect in January-March 2018 quarter (Q4) performance," the bank's MD and CEO, Dinabandhu Mohapatra, said to a television channel. A mail sent to BOI did not elicit any