RBI puts Dena Bank under prompt corrective action measure

RBI puts Dena Bank under prompt corrective action measure

The Reserve Bank of India (RBI) has initiated Prompt Corrective Action (PCA) against Dena Bank in view of high non-performing assets (NPAs), restricting the bank from giving new loans and new hiring. Dena Bank reported a widening loss of Rs 1225.42 crore for the quarter ended March 2018 against a loss of Rs 575.26 crore in the year ago period. “RBI vide their letter dated May 31, 2017, has initiated Prompt Corrective Action for Dena Bank and imposed certain restrictions, in view of high Net NPA and negative RoA (return on assets),” the bank said in a regulatory filing. The gross NPA as a percentage of total advances surged to an unsustainable 22.4% as on March 2018 against the 16.27% in the year ago. 

Read More at Livemint News date : 12 May 2018, Saturday

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