Bank Of India has informed the Exchange regarding 'disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015- 'Borrowal fraud of Rs. 319.15 crore in NPA account of M/s Future Lifestyle Fashions Limited'.'.
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Awaiting price reaction for this filing.
Bank of India has classified its Rs. 319.15 crore exposure to Future Lifestyle Fashions Limited as a fraud under RBI guidelines. The account had already turned into a Non-Performing Asset (NPA) and has been reported to the Reserve Bank of India. The bank has kept a provision of Rs. 319.15 crore against this account, meaning the full amount is already set aside as expected loss. The disclosure was made to stock exchanges as required under SEBI listing rules. Future Lifestyle Fashions is a known stressed borrower in the Indian retail space.
Since the bank has already made 100% provision for this exposure, there is no fresh hit to profits from this classification. The move is largely procedural and should not meaningfully move the stock, though it highlights ongoing asset quality challenges in the retail/lifestyle lending segment.