New Delhi: State-owned Bank of India (BoI) is reportedly will shut 400 ATMs and will take a call on closing a further 300 ATMs by the end of February. According to media reports, the bank is deliberating upon customer requirements, usgae pattern and location before deciding to close down the ATM.

In April, BoI reduced the number of ATMs to 7,717 from 7,807 in December. BoI is currently in on fire as the Reserve Bank of India has initiated a prompt corrective action against it. The RBI’s move will place various restrictions on the lender, including on fresh loans and dividend distribution due to high bad loans. Reports state that even though there was an improvement in recoveries from the stressed assets, the bank’s gross and net non-performing assets (NPAs) still remain high.

At the end of September, Bank of India’s gross NPAs stood at 12.62 percent and net NPAs at 6.47 percent. Its common equity Tier I capital was 7.21 percent. The Reserve Bank in April had issued a new set of enabling provisions under the revised PCA framework with a clause that if the bank does not show improvement then it could be either be merged or taken over by other bank.