BoB receives Rs 10,000 crore via Rs 2,000 note deposits, exchange

Bank of Baroda (BoB) has so far either deposited or exchanged Rs 10,000 crore worth of Rs 2,000 notes, an official told Business standard.

The senior official said that his bank had received around Rs 9,000 crore worth of Rs 2,000 currency notes as deposits, while notes worth Rs 1,000 crore were exchanged through the branch network.

The Reserve Bank of India (RBI) on May 19 announced the withdrawal of Rs 2,000 notes, the highest denomination in circulation, but said it would continue to be a legal tender. The central bank, however, encouraged people to exchange and deposit the notes by September 30. The process to deposit/exchange began on May 23.

Speaking on the question of extension of further credit to GoFirst, he said that the bank is keeping a watch on the developments in GoFirst and may consider extending further credit to the company if there is any demand from the company’s end.

“The bank’s intention is that GoFirst comes out of this resolution process and gets back to the business,” he added. “The bank has already made a provision of Rs 500 crore against the loan extended to GoFirst, so there is no further provisioning required from the bank’s end.”

On Friday, the lenders of grounded carrier Go First discussed its revival plan and appointed Shailendra Ajmera, of consultancy firm EY, as the new resolution professional.