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| Banks have already comes as under PCA initiated by RBI. That is IDBI Bank, Indian Overseas Bank, UCO Bank, Dena Bank, and Central Bank of India.
Kolkata: Reserve Bank of India (RBI) has taken a corrective action against on Bank of Maharashtra as taken as Restriction action against there banking activities.
RBI has said that this action was taken on the view of banks due to High level of bad loans. RBI also added saying that this action will not have any impact on materials of the performance of the banks that if the banks wants to contribute to improve the internal controls of the banks and improvement in its assets quality, profitability and efficiency.
Bank of Maharashtra will be the Sixth bank to be placed under PCA by the RBI. The five banks which were already placed under PCA were:
1. IDBI Bank
2. Indian Overseas Bank
3. UCO Bank
4. Dena Bank
5. Central Bank of India
This banks will be restricted from announcing dividend, Hiring branches, and giving loans to the companies.
This Bank of Maharashtra has posted a Net loss of Rs. 1372 Crore in fiscal year 2016-2017 and its gross NPA has crossed 16% against 9.3% a year ago.
In the past RBI has clarified that PCA imposed on certain banks is not intended to constrains for the normal incense of the bank for the general public. It is clarified that PCA is triggered so that it allows the regulator to closely engage with the bank's management in order to Improve there financial wealth.
Rating Agency ICRA has stared that 16 government owned banks out of 21 (excluding SBI associates) and two out of 16 private banks might comes under PCA framework.
Sources Via: Economic Times
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