Bank Of India Declares ₹575.40 Crore Future Enterprises Loan Account As Fraud, Full Provision Made
· Free Press Journal
Mumbai: Public sector lender Bank of India has declared the non-performing asset (NPA) account of Future Enterprises Limited as fraud, involving an outstanding amount of Rs 575.40 crore. The bank disclosed the development in a regulatory filing submitted to stock exchanges on Monday.
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The lender said it has already made provisions covering the entire outstanding amount and has reported the matter to the Reserve Bank of India (RBI), in line with regulatory requirements.
Rs 575.40 Crore Account Declared Fraud
According to the exchange filing, Bank of India classified the NPA account of Future Enterprises Limited as fraud under its policy for determining and disclosing material events.
The total outstanding amount stands at Rs 575.40 crore, while provisions held against the account are also Rs 575.40 crore.
This means the bank has provided for 100 per cent of the outstanding exposure, although the filing does not disclose any potential recovery.
RBI Informed About Fraud Classification
Bank of India confirmed that the matter was reported to the RBI on October 12, 2026, as required under applicable banking regulations.
The disclosure was made under Regulation 30 of the Securities and Exchange Board of India's Listing Obligations and Disclosure Requirements Regulations, 2015.
Central Bank of India Receives First Rajbhasha Kirti AwardThe bank communicated the development to both the National Stock Exchange (NSE) and BSE through an official filing.
What Does Full Provisioning Mean?
Full provisioning indicates that the lender has already recognised provisions equivalent to the entire outstanding amount of the troubled account.
However, the disclosure does not specify when the account originally became non-performing or provide details about the circumstances behind the fraud classification.
It also does not mention whether any recovery proceedings are underway or whether additional financial implications are expected.
Bank Issues Official Disclosure
The regulatory communication was signed by Bank of India Company Secretary Usha Ramsinghani.
NCLT Approves ₹7.42 Crore Resolution Plan For Central Departmental Stores Despite ₹560 Crore Claims By Central Bank Of IndiaThe filing confirms the fraud classification, outstanding exposure, provisioning and RBI reporting, without providing further details about the underlying transactions or alleged irregularities involved in the account.
Disclaimer: This report is based on Bank of India's regulatory filing and does not independently verify the fraud classification.