Bank of India Ltd has said that it has classified a non-performing asset (NPA) linked to Rolta India Ltd, amounting to ₹616.30 crore, as fraud. Bank of India has reported the matter to the Reserve Bank of India (RBI) as per regulatory requirements under SEBI (LODR) Regulations, 2015, and its internal disclosure policies.
The bank informed the stock exchanges that the entire outstanding amount has been fully provisioned and the information has been reported to the Reserve Bank of India (RBI) on Wednesday.
Rolta India Ltd. was an IT solutions provider and has faced severe financial distress in recent years, leading to its filing of bankruptcy in January 2023.
As per a report of Economics Times dated May 2024, Rolta owes banks led by Union Bank of India (UBI) Rs 7,100 crore and another Rs 6,699 crore to unsecured foreign bondholders led by Citigroup, adding up to a total debt of close to Rs 14,000 crore.
In another update, Bank of India’s IBU Gift City Branch has executed a JPY 15 billion (approximately $100 million) facility agreement for borrowing. The funds, expected on March 27, 2025, will be utilised for on-lending and other general corporate purposes at its overseas branches.
Recently, Government has also released data related to NPA in Banks. Banks have written off non-performing assets (NPAs) or bad loans worth about Rs 16.35 trillion in last 10 financial years.
Highest amount of Rs 2,36,265 crore was written off during financial year 2018-19 while NPAs worth Rs 58,786 crore were written off in 2014-15, the lowest in the last 10 years. During 2023-24, banks wrote off bad loans of Rs 1,70,270 crore, lower than Rs 2,16,324 crore done in the previous financial year.
