BoI does a complete turnaround

After figuring in the losers list consistently, it was quite a surprise to see a PSU hold the mantle as the second top gainer on the BSE since morning. The stock price climbed over 11% today to Rs.105.75. Yesterday it had hit a new 52-week low at Rs.91.35.

The sudden change in outlook has happened after N Damodharan, Executive Director, Bank of India, stated that the Bank has recovered Rs.7000 crore from other banks.

The official said that Bank of India has collected, over past two months, Rs 7,000 crore worth Standby Letters of Credit (SLOCs). He said that another Rs.2000 crore is estimated to be recovered over the next two months

A standby letter of credit is a document issued by a bank, which serves as a guarantee as the bank promises to pay the beneficiary.

Mr.Damodaran said that the bank aims to bring the net NPA from around 6.7% currently to less than 6%.