Bank of India declares Future Enterprise Ltd NPA as fraud, 575.40 crore exposure
BANKINDIA · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 0.7 pts less than Nifty Midcap 150 and 0.9 pts less than its Public Sector Bank peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Bank of India has declared the account of Future Enterprise Ltd as fraud and reported it to the RBI as per regulatory requirement. The total outstanding amount in this account is Rs 575.40 crore, and the bank has made an equal provision of Rs 575.40 crore, meaning the entire exposure is fully covered. The disclosure is made under SEBI LODR Regulation 30. Since the bank has already set aside funds equal to the full amount, there may be no additional financial hit from this classification.
Fully provided for, so limited fresh P&L hit. Signals weak credit underwriting; minor negative sentiment for the stock.