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Mr T. S. Narayanasami

Our bureau

Mumbai, March 3 Bank of India is looking to sell aggregate stressed assets of around Rs 250 crore to an asset recovery company. This is the first time that the bank would be selling bulk non-performing assets, said Mr T.S. Narayanasami, Chairman and Managing Director.

These NPAs are corporate loans and the average size of each asset is about Rs 1 crore. So far the bank has sold only single non-performing assets. “This will help us weed out smaller accounts,” Mr Narayanasami said.

Though the bank is primarily in talks with ARCIL, it is also open to other players if it gets a better price. The exercise is likely to be completed this month, said the Executive Director, Mr K.R. Kamath.

The bank crossed the Rs 2 lakh crore mark in its domestic business mix, as on February 29, 2008. This comprises Rs 1,14,500 crore deposits and Rs 85,600 crore advances.

Credit grew by 22.6 per cent over March 2007 and 33.2 per cent year-on-year. Aggregate deposits grew 20.9 per cent over March 2007 and 30.1 per cent over last year.

The bank saw cash recovery of Rs 900 crore for 11 months of the fiscal. This included Rs 280 crore from written-off assets and upgradation of Rs 200 crore.

BOI will open branches in Cambodia and Scotland within a month and a subsidiary in Tanzania within two months. Other areas the bank plans to expand include Canada, where a subsidiary will be set up soon, Auckland and Cairo.

The African business is growing, as the capital involved is lower and recovery is higher. Therefore, the margins are higher, said a senior official of the bank.

More Stories on : Non-Performing Assets | Public Sector Banks

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