Bank of India to sell Rs 900 cr NPAs to ARCs

Bank of India to sell Rs 900 cr NPAs to ARCs

Prolonged sluggishness in the economy has forced Bank of India to lower its margin expectation for the current fiscal to 2.90 per cent from 3 per cent earlier, a top bank official said on Monday.

The earlier estimate for NIM on the domestic side was at 3 per cent, but the turnaround which we thought, has not really happened. So, we are compelled to revise that to 2.90 per cent,” the bank’s Chairperson and Managing Director Vijayalaxmi Iyer told reporters here.

The bank expects net interest margins on the international side improve to 1.20 per cent by March-end, while combined NIM is likely to at 2.72 per cent.

The bank is examining to sell around Rs 900 crore worth of non-performing assets (NPAs) to asset reconstruction companies in the current quarter.

“We have been doing it (sale of NPAs) in last two quarters, and we are examining at it even in this quarter also. We have to crystallise on the may be Rs 800-900 crore in Q4,” Iyer said and added the bank had auctioned Rs 2,000 crore of NPAs in Q2 and Q3,  but only about Rs 627 crore was taken of from the gross NPA level.