A top bank official said that Bank of India will not take any action in hurry, infact it is ready to offer funds to brokers needing additional liquidity in the face of the stock market mayhem.
"We will not resort to panic selling as we are confident that the markets will revive as the fundamentals of the economy remain strong," BoI Chairman and Managing Director T S Narayanasami told reportes here.
On Tuesday the 30-share Sensex continued its southward movement for the second day, registering an intraday fall of 2,029 points.
Though trading was suspended for about an hour but the index still closed in the red, down by over 850 points.
"The current crisis is a temporary thing and we in the bank are taking a very pragmatic view of the situation. We will be willing to provide brokers with additional liquidity," he said.
He added in case it is required, the bank will, with due consent of the regulator, may think over of adjusting the margin for them.
According to laws, bank's capital exposure can be 40 per cent of their net worth. Bank of India can take exposure up to Rs 2200 crore, which at present was much below the figure.