Bank of India sells betrayals to three major accounts

Bank of India (BoI) has sold its betrayals to three major accounts during the quarter ended December with bangs ranging between 64% and 84%. The three large accounts to which the betrayals sold are Alok Industries, Asian Colour Coated Ispat, and ISMT. From the sale of its Rs 621 crore betrayal to Alok, the bank recovered Rs 96 crore. Alok Industries was one of the 12 non-performing assets (NPAs) in the first list named by the Reserve Bank of India and mandated for the resolution under the Insolvency and Bankruptcy Code (IBC). The sale shows an 84.5% bang for BOI. Asian Colour Coated was named in the central bank’s second list among the 28 accounts.

This betrayals sale resulted in a relatively better recovery amount of Rs 69 crore for Rs 191 crore exposure, or a bang close to 64%. According to ISMT, the recovery was to modulate of Rs 155 crore against an outstanding of Rs 422 crore, about 63% bang. Banks have decided to sell off their betrayals to some accounts that are undergoing the insolvency process as the 270-day deadline has been split in the cases involving most of the large accounts. In October, BOT had put on sale NPAs including its betrayals to eight power projects and five accounts named in either of the RBI’s two lists and these worth Rs 10,710 crore.

Later it had invited bids for 44 NPA accounts worth a total Rs 4,703 crore during the quarter. These accounts include Lavasa Corporation (Rs 328 crore), Dighi Port (Rs 273 crore), Visa Steel (Rs 67 crore), and Sona Alloys (Rs 23.45 crore). Visa Steel is also a second-list account. Some of the accounts like Lavasa, Jyoti Power, and Visa Steel, have been kept on sale more than once by the bank. During the September quarter, the recoveries from the sale of BOI’s bad assets did not match its expectations. The managing director and chief executive officer of BOI, Dinabandhu Mohapatra said that the bank has recovered around Rs 282 crore during this quarter and that process will continue for the remaining quarters Q3 and Q4. He also said that the management has identified accounts worth Rs 10,000 crore for sale from which they are expecting good recoveries.  

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