Bank of India skips ₹3000 Cr QIP plan after govt puts in ₹2257 Crores

Bank of India

Bank of India, government-owned banking institution has postponed its plan to raise ₹3000 crores through qualified institutional placement (QIP). According to a top official, the bank has taken this decision after government’s approval to infuse ₹2257 crores in the bank as part of the major liquidation of the banks.

PTI quoted Dinabandhu Mohapatra, Managing Director of Bank of India stating that the bank has decided to postpone the plan to raise funds via QIP after government infused a sum of ₹2257 Crores in the bank. According to Mohapatra, the infusion by the central government has addressed the immediate need of funds and that the bank is now able to address the immediate issues. He also added that the bank is expecting more money to flow in form of recap bonds and that means that there is currently no need of raising any money through an institutional route.

In March 2017, Bank of India was put on the list of PCA (Prompt Corrective Action) guidelines. This list included the banks which had a high volume of NPAs (non-performing assets) and bad loans. However, according to Mohapatra, the bank has laid some aggressive plans to recover the bad loans and it expects to come out of the list in the next few review meetings.