Assets worth more than Rs 42 crore of a Kolkata-based company have been attached in connection with a money laundering probe linked to an alleged bank fraud case, the Enforcement Directorate (ED) said on Monday. A provisional order for attaching 11 properties of Shree Mahalaxmi Corporation Pvt Ltd has been issued under the Prevention of Money Laundering Act (PMLA).
The total value of the assets, as per the ED, is Rs 42.36 crore.
The agency said its probe found that the loan amount of Rs 164 crore taken from the SBI was “diverted after rotating among the bank accounts maintained by various entities and colouring them as genuine business transactions”.
“It was found that various Letters of Credit (LCs) were opened in the name of certain companies against the credit facilities and the same were discounted on the basis of forged invoices, challans etc,” it alleged in a statement.
The LC proceeds, the ED said, were later laundered and siphoned off.
The money laundering case is based on a 2017 FIR and a chargesheet (filed in 2019) of the CBI against the company, its directors and some others “for defrauding the State Bank of India (SBI) to the extent of Rs 164 crore by availing loan on the basis of false/forged documents and utilising the said loan amount for purpose other than for which it was sanctioned”.
On the occasion of Diwali, 150 flats completed by National Buildings Construction Corporation (NBCC) in a stalled project of Amrapali were given to the homebuyers in a small ceremony organised with the help of court receiver.
New Delhi [India], November 13 (ANI): With an aim to take mainstream banking services to the people, the Bank of India has been conducting “Customer Outreach Programme”through its branches across the country to include more and more people in the mainstream banking and offer them banking services of their choice.
One first such programme was conducted at Srinagar on October 6, 2021.
According to the official release, BOI conducted another ‘Customer Outreach Programme” at its National Banking Group, New Delhi on November 11 with an attendance of over 100 customers including new and existing customers from all the branches across the New Delhi Zone.
The programme was inaugurated by Managing Director and CEO Atanu Kumar Das by opening New 116 BCs outlets at various locations in Ladakh, Delhi, Punjab and Rajasthan.
Speaking on the occasion, Das highlighted various initiatives taken by the bank under RAM (Retail, Agri and MSME) in recent times for the benefit of its customers.
He informed that the bank has recently slashed ROI for home loans and vehicle loans and has posted a net profit of 1,050.98 crores for the quarter of September 2021 marking a rise of 99.89 per cent.
He said, “BOI is committed fully to the economic revival process.”
He further added that BOI is at the forefront of successfully implementing all the government-sponsored schemes viz. MSME, Mudra, Stand-up, Start-up, PM SVANidhi schemes.
Bank has achieved 33 per cent PMSBY enrolments in PMJDY against DFS Targets 30 per cent for Q2FY21-22 and has won the “APY Annual Award (2020-21)” for overall performance for achieving ‘per APY’ target. The bank is implementing an E-PLATFORM solution for Straight through the process of major Banking products.
Das also distributed sanction letters to the beneficiary customers of various banking products viz. Housing Loan, Vehicle Loan, Stand up and Startup, MSME and PM SVANidhi schemes to the tune of ‘300cr.
It is noteworthy that during the month-long “customer outreach programmes”, the Bank of India has sanctioned ‘5000 cr and disbursed more than 4000 cr in the RAM segment alone. Another 8500 cr disbursal was done in corporate segments.
Bank intends to enrol 1500 BCs in these states during this quarter. Field General Manager Arun Kumar Jain, Zonal Manager, New Delhi Zone Ajay Kumar Panth, other senior officers and respective branch heads along with customers were present during the programme. (ANI)
Tata Motors on Tuesday said it has partnered with Bank of India (BOI) to offer finance options to all its passenger vehicle customers. Under the partnership, BOI will provide loans to Tata Motors’ customers at an interest rate starting from as low as 6.85%, the company said in a statement.
Moreover, the scheme will offer a maximum of 90% financing on the total cost of the vehicle, which includes insurance and registration, it added.
Customers can also opt for EMI starting with Rs 1,502 per lakh on a 7-year repayment period, the company said.
“This partnership is in line with our #FinancEasy Festival, wherein we are collaborating with multiple finance partners across India to make ownership of cars accessible, as well as a hassle-free process for the customers and thereby adding to the celebrations of this festive season,” Tata Motors Vice President, Sales, Marketing & Customer Care, Passenger Vehicle Business Unit Rajan Amba said.
BOI General Manager – Retail Business Rajesh Ingle said Bank of India has reoriented the banking services with retail customer as focal point by designing products that are aligned to customer needs.
“Our vehicle loan products with lowest rate of interest is one such product. Bank’s tie-up with Tata Motors will be win-win for customers in the sense that they can access best in class personal mobility solution with the best finance option from Bank of India,” he added.
The offers through the partnership will be applicable on the New Forever range of conventional cars and SUVs as well as on EVs for personal segment buyers across the country, the statement said.
The Reserve Bank of India has modified the prompt corrective action plans for weaker banks with it laying down criteria for a bank to exit the framework once its financial metrics improve. It has also removed the profitability parameter for invoking the regulatory action.
The revised framework will be effective from January next year. The existing one has been in vogue since April 1, 2017. Under the existing rules, as many as 12 banks were placed under restrictions after they crossed the tolerance threshold. Barring one, all banks have exited the framework over the last two years but no uniform policy was applied for their exit. For example, RBI removed PCA from Bank of India and Bank of Maharashtra in January 2019 after their net non-performing assets ratio fell below the risk threshold of 6%.
But they were not profitable when the restrictions were lifted. In contrast, the erstwhile Oriental Bank of Commerce was profitable but its NPA was higher than 6% at the time PCA was removed from it. With the introduction of the structured exit policy, RBI has tried to address this anomaly. Under the existing framework, RBI invokes PCA if a bank makes net loss for consecutive financial years.
This clause has been removed in the revised guidelines. Once a bank is placed under PCA, taking the bank out of PCA framework and /or withdrawal of restrictions imposed under it will be considered if no breaches in risk thresholds in any of the parameters are observed as per four continuous quarterly financial statements, one of which should be audited annual financial statement, RBI said Tuesday.
However, any exit from the framework would depend on RBI’s supervisory comfort of the RBI and assessment on sustainability of profitability of the bank. The regulator has also tweaked the capital norm and leverage rules. The objective of the PCA framework is to enable supervisory intervention at appropriate time and require the supervised entity to initiate and implement remedial measures in a timely manner, so as to restore its financial health, RBI said.
“The PCA framework is also intended to act as a tool for effective market discipline,” it said. These rules however do not preclude the regulator from taking any other action as it deems fit at any time, in addition to the corrective actions prescribed in the framework, which is applicable to all banks operating in India including foreign banks operating through branches or subsidiaries.
A bank is generally placed under the framework based on the audited annual financial results. However this does not bar RBI from imposing restrictions on any bank during the course of a year in extreme cases.
On liabilities side, Bank of India’s domestic deposits grew 2.5% on year to Rs 5,45,734 crore.
Bank of India (BoI) on Tuesday reported a nearly 100% year-on-year rise in net profit in the September quarter to Rs.1,051 crore on the back of lower provisions and higher other income.
The lender’s total provisions before tax fell 56.3% year on year (YoY) to Rs 894 crore in the July-September period.
Lower provisions were on account of improving asset quality. As on September 30, the lender’s gross non-performing assets (NPAs) stood at Rs 50,270 crore, lower than Rs 56,232 crore a year ago. The bank saw fresh slippages of Rs 1,307 crore in the reporting quarter — lower than Rs 3,942 crore in the previous quarter.
In a post earnings conference on Tuesday, the bank’s management said it had created 50% provision for its Rs 1,024-crore direct exposure to SREI group companies, whose boards were recently superseded by the Reserve Bank of India.
In percentage terms, BoI’s gross and net bad loan ratios improved to 12% and 2.79%, respectively, as on September-end from 13.51% and 3.35% as on June 30, respectively.
Going forward, the bank aims to lower the gross NPA ratio below 10% and the net NPA ratio by around 2%, said MD and CEO Atanu Kumar Das.
The bank’s net interest income (NII) stood at Rs 3,523 crore in the reporting quarter, lower by 14.3% on year. The domestic net interest margin (NIM) in July-September was 2.65%, lower than 2.88% a year ago. The capital adequacy ratio (CAR), as on September 30, stood at 17.05%, of which Tier I ratio was 13.88% and Tier II ratio stood at 3.17%.
As on September 30, Bank of India’s provision coverage ratio stood at 87.81%, while credit cost was 0.26%. Other income, that includes fees from third-party, rose 37% on a yearly basis to Rs 2136.28 crore.
The lender’s global advances increased 2.7% YoY to Rs 4,18,895 crore. Of these, domestic loans stood at Rs 3,68,573 crore, higher by 1.6% on year. Retail, agriculture and micro, small and medium enterprises loans formed 54% of the lender’s domestic loan book.
“There will be acceleration in advances going forward through a series of outreach campaigns, which we have conducted for the last two months and which we will continue in the coming months. We expect our overall advances to grow by 6-7% during the year,” Das said.
On liabilities side, Bank of India’s domestic deposits grew 2.5% on year to Rs 5,45,734 crore.
Bank of India’s standalone net profit almost doubled to ₹1,051 crore in the second quarter against ₹526 crore in the year ago period on the back of robust growth in other income and a steep decline in loan loss provisions.
During the reporting quarter, there was a reduction in gross non-performing assets (GNPAs) aggregating ₹5,771.50 crore.
The Mumbai-headquartered public sector bank’s net interest income (difference between interest earned and interest expended) declined 14 per cent year-on-year (yoy) to ₹3,523 crore (₹4,113 crore in the year ago quarter).
Other income, including profit/loss on sale of assets, profit/loss on revaluation of investments (net), earnings from foreign exchange and derivative transactions, recoveries from accounts previously written off, dividend income, etc., jumped 59 per cent yoy to ₹2,136 crore (₹1,346 crore).
GNPA position improved to 12 per cent of gross advances as at September-end 2021 against 13.51 per cent in the preceding quarter.
NPA position
Net NPAs position too improved to 2.79 per cent of net advances against 3.35 per cent in the preceding quarter.
Total deposits edged up by about one per cent yoy to ₹6,12,961 crore. Total advances were up about 5 per cent yoy to ₹3,78,727 crore.
On a consolidated basis, including the results of four domestic subsidiaries, four overseas subsidiaries, one joint venture and six associates, BoI reported a 97 per cent jump in net profit at ₹1,073 crore (₹543 crore).
State-run Bank of India on Tuesday reported nearly 100 per cent jump in its net profit at ₹1,051 crore in quarter ended September 2021.
The bank had posted net profit of ₹526 crore in the same period a year ago.
“Net profit for Q2FY22 stood at ₹1,051 crore, up by 99.89 per cent year-on-year,” the bank said in a regulatory filing.
On a sequential basis, net profit improved by 45.97 per cent from ₹720 crore.
Net interest income (NII) stood at ₹3,523 crore for the quarter Q2FY22. On a sequential basis, it increased by 12.06 per cent from ₹3,144 crore in quarter ended June 2021, the bank said.
Non-interest income increased by 58.71 per cent from a year ago to ₹2,136 crore for Q2FY22 against ₹1,346 crore in Q2FY21.
On the asset front, the bank improved the quality as the gross non-performing assets (NPAs) were down at 12 per cent of the gross advances at end of September 2021 from 13.79 per cent by end of same month a year ago.
Net NPAs too fell to 2.79 per cent from 2.89 per cent.
Bank of India stock traded at ₹62.25 apiece on BSE, up 3.06 per cent from the previous close.
New Delhi: State-run Bank of India on Tuesday reported nearly 100 per cent jump in its net profit at Rs 1,051 crore in quarter ended September 2021. The bank had posted net profit of Rs 526 crore in the same period a year ago.
“Net profit for Q2FY22 stood at Rs 1,051 crore, up by 99.89 per cent year-on-year,” the bank said in a regulatory filing.
On a sequential basis, net profit improved by 45.97 per cent from Rs 720 crore.
Net interest income (NII) stood at Rs 3,523 crore for the quarter Q2FY22. On a sequential basis, it increased by 12.06 per cent from Rs 3,144 crore in quarter ended June 2021, the bank said.
Non-interest income increased by 58.71 per cent from a year ago to Rs 2,136 crore for Q2FY22 against Rs 1,346 crore in Q2FY21.
On the asset front, the bank improved the quality as the gross non-performing assets (NPAs) were down at 12 per cent of the gross advances at end of September 2021 from 13.79 per cent by end of same month a year ago.
Net NPAs too fell to 2.79 per cent from 2.89 per cent.
Bank of India stock traded at Rs 62.25 apiece on BSE, up 3.06 per cent from the previous close.
Leh, Bank of India on Friday extended its operations to the Union Territory of Ladakh by opening its first-ever branch here with its top official asserting that the bank is fully committed to extending its banking services to the people living in far-flung areas of the country.
This was the 5,086th branch opened by a bank in the country and abroad, and is fully computerised and digitised with a facility of E-Gallery to provide 24×7 banking to the residents of Leh, a spokesperson of the Bank of India (BOI) said.
He said BOI Managing Director and Chief Executive Officer A K Das opened the branch in the presence of Field General Manager A K Jain, Zonal Manager Vasudev, Branch Manager Sangeeta and various local dignitaries and customers.
“The bank is fully committed to extending its banking services to the people living in the far-flung areas of the country. The opening of a branch here is an important step towards this goal,” Das said.
He said it would not only boost economic activities in the region but will also help the local people to use various banking products like housing, vehicle, education and agriculture loans, and also reap the benefits of other government schemes.
Das added that the bank has a unique salary account scheme for defence and paramilitary personnel providing free insurance cover.
“The bank also provides home, vehicle and consumer loans at low rates. Recently, the bank has reduced the interest rate for housing loans to 6.50 per cent and that for vehicle loans to 6.85 per cent,” he said.
Das added that the bank will continue to endeavour to provide the best-quality banking facilities to its customers and connect more and more people to mainstream banking with fully digitised facilities.
Meanwhile, in continuation to the bank’s mission to reach maximum customers across India, it also conducted a ‘customer outreach programme’ at Leh branch, wherein Das distributed loan sanction letters to various beneficiaries, the spokesperson said.
Under the bank’s corporate social responsibility, he said Das is presenting ‘paper cutting machine’ to a non-governmental organisation of Ladakh, People’s Action Group for Inclusion and Right, who is assisting differently-abled persons by empowering them with various skills to earn their livelihood and live a respectable life. PTI TAS AB HRS hrs
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