Bank of India a State owned bank, has decided to close down 400 of its ATMs, which is done as a part of turnaround plan. This they plan to implement without causing inconvenience to its customers.
Further, the bank plans to close another 300 ATMs by the end of Feb 2018, after taking into account the factors like
- Customer requirements,
- ATM usage pattern and
- The locations where they are available.
- The bank has brought down its ATMs from 7,8-7 in December last to 7,717 in April, according to the reports.
- The bank is working on a turnaround plan which is in line with the memorandum of understanding signed with the Government.
- This is planned through rationalisation of branches and the ATMs, and also rebalancing the loan portfolio through increase in Retail Loans.
- The Bank is on a continuous stress with high fresh slippages of loans during 2016-17 and 2017-18.
- There was some improvement in recoveries and upgradations, however, the NPAs continued to show an upward trend.
- RBI has put the Bank under PROMPT CORRECTIVE ACTION due to
- bank’s high NPAs,
- insufficient common equity Tier 1 capital and
- negative return on assets for consecutive years.
Bank of India, at the end of September, has a gross NPA figure of 12.62 per cent and net NPAs of 6.47 per cent whereas its common equity Tier I capital was at 7.21 per cent.