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MUMBAI, Dec. 19

A DAY after the RBI's announcement of the guidelines for the setting up of asset reconstruction companies for the recovery of NPAs under the Securitisation Ordinance, Bank of India, has chosen an alternative route.

The bank has appointed Deloitte Touche Tohmatsu India Pvt Ltd, a global professional services firm, as a special recovery agent for the same, said Mr K.V. Krishnamurthy, Chairman & Managing Director, Bank of India, at the sidelines of a press conference organised by the bank.

Deloitte Touche Tohmatsu will take care of everything right from due diligence, seizure of assets, valuation and sale of assets. Only after the recovered money is deposited in the bank's accounts, will Bank of India pay the company, explained the Chairman.

Deloitte Touche will get 3-3.5 per cent of the recovered amount as commission on a performance basis, he said.

"We are not forming an asset reconstruction company (ARC) of our own nor are we interested in hiring one,'' said Mr K.V. Krishnamurthy, at the sidelines of a press conference.

Asked why the bank was not interested in any of the existing ARCs, he said, the existing foreign ARCs will only be interested in making profits for themselves and that will eat into our recovered money.

With net NPAs totalling Rs 2,200 crore, the bank is open to appointing more such special recovery agents.

The bank has at present issued about 640 notices worth Rs 200 crore. The bank has begun seizure of assets which include real estate such as flats and an industrial unit in Madhya Pradesh, said a senior official in the bank.

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