Bank of India fell 3.83% to Rs 174.40 at 15:00 IST on BSE after the bank said that the Reserve Bank of India has placed the bank under prompt corrective action framework.
The announcement was made during trading hours today, 20 December 2017.Meanwhile, the S&P BSE Sensex was up 32.01 points, or 0.09% to 33,868.75.
On the BSE, 3.98 lakh shares were traded in the counter so far, compared with average daily volumes of 2.42 lakh shares in the past two weeks. The stock had hit a high of Rs 180.40 and a low of Rs 171.70 so far during the day. The stock hit a 52-week high of Rs 216.70 on 17 November 2017. The stock hit a 52-week low of Rs 102.60 on 27 December 2016.
The Reserve Bank of India vide their letter dated 19 December 2017, has placed Bank of India under Prompt Corrective Action (PCA) framework, consequent to the onsite inspection under the risk based supervision model carried out for year ended March 2017, and the report issued thereof. This is in view of high net non-performing assets (NPA), insufficient Common Equity Tier 1 (CET1) capital and negative return on assets (RoA) for two consequent years. This action will contribute to the overall improvement in risk management, asset quality, profitability, efficiency, etc of the bank.
Net profit of Bank of India rose 41.18% to Rs 179.07 crore on 1.15% rise in total income to Rs 11600.47 crore in Q2 September 2017 over Q2 September 2016.
The Government of India held 75.123% stake in Bank of India as per the shareholding pattern as on 30 September 2017.
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