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Bank of India on Monday said it has an exposure of ₹82.55 crore to Winsome Diamonds and Jewellery Ltd and ₹148.67 crore to Forever Precious Diamond and Jewellery Ltd.
The public sector bank had received a communication from the Reserve Bank of India on September 6 advising it to pay a penalty of ₹1 crore on account of ‘Violation of RBI guidelines on Frauds- Classification and Reporting’ in the aforesaid accounts. BoI said it will pay the penalty on or before September 19.
Case pending with NCLT
Clarifying its position to the stock exchanges, the public sector bank said it classified the Winsome Diamond and Jewellery Ltd account as a non-performing asset on June 30, 2015. The Forever Precious Diamond and Jewellery Ltd account was classified as an NPA on June 30, 2016.
In both the cases, BoI holds 100 per cent provision and cases are pending with the National Company Law Tribunal's Ahmedabad Bench for liquidation proceedings, according to the stock exchange clarification.
“The RBI has directed to pay the penalty within 14 days of receipt of the order. Accordingly, it shall be paid on due date -- on or before September 19.... there will be no further impact on our financial position,” the Bank said.
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