BoI has recovered Rs 7000 cr worth SLOCs from other banks

State-run Bank of India has recovered Rs 7,000 crore worth Standby Letters of Credit in the last two months and the balance of Rs.2,000 crore would be recovered in another two months, a top bank official said today.

This recovery will substantially improve the Bank's balance sheet, Bank of India Executive Director N Damodharan told reporters here.

The bank has embarked on a plan, following restrictions from RBI on it under the Prompt Corrective Action (PCA) framework. The bank is aiming to bring down its net NPA ratio substantially, to below six per cent, he said.

Asked about credit growth, he said it has grown 22 per cent in the first nine months of 2017-18.

Stating that the bank has not tightened its norms for providing loans to MSMEs in the wake of the recent frauds in the banking sector, Damodharan said about 85 per cent of the accounts have been linked with Aadhaar.

To a specific question on the recent incidents of frauds in the banks, he said "there are multiple checks and balances. We have a robust audit system in place."

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