Bank of India has exposure worth Rs 3,800 crore to DHFL, said Dinabandhu Mohapatra, managing director and CEO of the bank, adding that the lender will take necessary steps regarding the same.
The Reserve Bank of India (RBI) said it has dropped Bank of India (BoI), Bank of Maharashtra (BoM)and Oriental Bank of Commerce from the prompt corrective action plan (PCA). However, the RBI will continue to regularly monitor the performance of these banks.
Sharing his views and outlook, Mohapatra said, “We will continue to be careful. All these years we have posted good improvement quarter-on-quarter (QoQ) and we continue to concentrate on risk management and asset quality. Along with all these parameters, we will be focusing on profit Q4 onwards,” he said.
“New slippages have come down and going forward also, it will be downward momentum only,” he added.
Speaking about bank’s percentage in non-performing assets (NPAs) from Mudra loans, he further mentioned, “Mudra loans amount-wise is not very big. Though, NPA may be around 5-6 percent as on today but then we have selectively disbursed under Mudra. Those who were already in business- we have selected those entrepreneurs so that going forward stress will be less and they are managing their assets well and it is all backed by guarantee by Mudra commission. We are concentrating on bigger assets where we have to improve very fast.”