Bank of India plans to raise 80 billion rupees of capital in fiscal 2017-2018 to prepare for the acquisition of a bank when the government initiates the consolidation process in the banking sector, The Economic Times reported Aug. 10, citing the bank's CEO and Managing Director Dinabandhu Mohapatra.

The bank has sought 25 billion rupees of capital from the Indian government in the current fiscal year and plans to raise the remaining capital from the market. The lender is also looking to sell noncore assets, including a stake of up to 29.96% in STCI Finance Ltd.

Bank of India swung to fiscal first-quarter profit, recently posting net profit of 877.1 million rupees for the period, compared to a net loss of 7.41 billion rupees in the prior-year quarter.

Mohapatra said the bank's recovery may gather pace in the coming quarters, barring any changes stemming from external environmental factors.

As of Aug. 9, US$1 was equivalent to 63.86 Indian rupees.