Bank Of India will Shut 400 ATMs As Part Of Cost-Cutting Drive, 300 More Under Review

In September end, Bank of India’s gross NPAs stood at 12.62 per cent and net NPAs at 6.47 per cent. Its common equity Tier I capital was 7.21 per cent.

New Delhi, December 22: State-owned Bank of India (BoI) is believed to shut its 400 ATMs as part of the Bank’s cost-cutting drive. Apart from the 400 ATMs, the Bank said it will take a decision on shutting another 300 more ATMs by the end of February. With an aim to cause minimal inconvenience to customers, the bank is thinking upon customer requirements, usage pattern and location before deciding to close down the ATM, a report by Business Standard mentioned.

Highlights

In a cost-cutting drive, Bank of India will shut 400 ATMs
BoI will take a call on closing a further 300 ATMs by the end of February

In April this year, they reduced the number of their ATMs to 7,717 from 7,807 ATMs in December. BoI is currently in on fire as the Reserve Bank of India has initiated a prompt corrective action against it. The RBI’s move will place various restrictions on the lender, including on fresh loans and dividend distribution due to high bad loans. Reports state that even though there was an improvement in recoveries from the stressed assets, the bank’s gross and net non-performing assets (NPAs) still remain high.

In September end, Bank of India’s gross NPAs stood at 12.62 per cent and net NPAs at 6.47 per cent. Its common equity Tier I capital was 7.21 per cent. The Bank’s asset quality worsened with high gross non-performing assets (NPAs). Reports state that at the end of March 2017, its total NPA stood at 13.22% as against 13.07% in the previous year. Net NPAs improved to 6.90% from 7.79%, yet it continues to worry the central bank. For the second quarter ended September 2017-18, asset quality improved as gross NPAs declined marginally to 12.62% of gross advances, from 13.45% a year ago.

In November, BoI reported a 41.1 per cent increase in net profit at Rs 179.07 crore for the quarter ending September following a decline in bad loans. The bank had a net profit of Rs 126.84 crore in July- September 2016-17. The total income rose to Rs 11,600.47 crore in the July- September quarter of 2017-18 whereas the figure was Rs 11,469.11 crore for the same quarter of previous fiscal, BoI said in a regulatory filing to stock exchanges.