Banking Sector
BoB likely to Recover NPAs worth Rs 2,700 cr in FY16
Bank of Baroda (BoB) is likely to recover up to Rs 2,700 crore from non-performing assets in the current fiscal year, up 80% year-on-year, a senior official at the bank told FE. The state-owned bank, which recovered a total of Rs 1,492 crore in the previous financial year, has already recovered around R1,750 crore as on February 29, the source said. "The initial 9 months of the year were a little slow. We could only garner around Rs 900 crore by December. But in the 60 days of January and February we managed to recover another Rs 850 crore," the source said, adding that around Rs 850 crore was expected to be recovered in March alone. When seen as a percentage of the opening balance of NPAs for the fiscal year, BoB managed to recover 12.6% of the amount during FY15.
BOI to get Rs. 1,150 cr Capital Infusion from Govt
State-run Bank of India said the govt has approved a capital infusion of Rs. 1,150 crore in lieu of preferential allotment of shares. "The govt of India has conveyed their approval to infuse capital funds to the tune of Rs. 1,150 cr in the bank by way of preferential allotment of equity shares in favour of govt of India," BOI said in a statement. This is part of govt's plans to infuse Rs. 5,050 cr in the public sector banks. In the first tranche, as many as 13 public sectors banks were given fund support of Rs. 19,950 cr. Of this, SBI got the highest amount of Rs. 5,393 cr. Besides, the govt infused Rs. 2,229 cr in IDBI Bank, IOB Rs. 2,009 cr and PNB Rs. 1,732 cr. Last year, the govt announced a revamp plan 'Indradhanush' to infuse Rs. 70,000 cr in state-owned banks over four years, while they will have to raise a further Rs. 1.1 lakh cr from markets to meet their capital requirements in line with global risk norms Basel-III.