BoB receives Rs 10,000 crore via Rs 2,000 note deposits, exchange
Bank of Baroda (BoB) has so far deposited or exchanged Rs 10,000 crore notes of Rs 2,000, an official told Business Standard.
The senior official said his bank had received around Rs 9,000 crore worth of Rs 2,000 crores as deposit, while the exchange of notes worth Rs 1,000 crore was done through the branch network.
The Reserve Bank of India (RBI) on May 19 announced the withdrawal of 2,000 rupee notes, the highest denomination in circulation, but said they would remain legal tender. However, the central bank has encouraged people to exchange and deposit banknotes by September 30. The deposit/exchange process started on May 23.
Addressing the issue of extending more credit to GoFirst, he said the bank is monitoring developments in GoFirst and may consider granting more credit to the company if there is any demand from the company’s end.
“The bank’s intent is for GoFirst to get out of this resolution process and get back in business,” he added. “The bank has already made a provision of Rs 500 crore against the loan to GoFirst, so there is no further provision required from the bank’s end.”
On Friday, land carrier Go First’s lenders discussed its plan for revival and appointed Shailendra Ajmera, of consulting firm EY, as the new resolution professional.
Go First, owned by the Wadia Group, declared bankruptcy on May 2 due to a severe cash crunch caused by more than half of its fleet being out of business. His application was granted by the National Company Law Tribunal (NCLT) on May 10.
Go First has extended the cancellation of flights until June 12, citing operational reasons, and also announced on June 8, adding that it will resume bookings soon.