After Dena Bank, RBI may put restrictions on 2 more lenders under PCA 

RBI news

RBI news

After Dena Bank, RBI may put restrictions on 2 more lenders under PCA

After Dena, the Reserve Bank now is likely to impose certain restrictions on couple of more public sector lenders under the Prompt Corrective Action (PCA) mechanism due to worsening asset quality, a source said. Already, there are 11 banks, out of 21 state-owned banks, under the PCA of the Reserve Bank because of their weak financials. Meanwhile, the finance ministry has called a meeting of 11 stressed banks, which are under the PCA framework of the RBI on May 17, to discuss and deliberate on implementation of reforms agenda. 
The 11 banks on the RBI’s watch list are Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra Together, these banks accounted for Rs 52,311 crore of the Rs 88,139-crore capital infusion plan (through bonds and budgetary support) announced by the government for 2017-18. “We will start with banks that are under the PCA and then we will have meetings with non-PCA banks on the progress on reform measures that they had committed to be eligible to get funds,” Financial Services Secretary Rajiv Kumar had said. The reform agenda includes EASE (Enhanced Access and Service Excellence), which focuses on six themes including customer responsiveness, responsible banking, credit off take, PSBs as Udyami Mitra, deepening financial inclusion and digitization. Capital infusion this time has been tied to strict performance goals of PSBs, incorporating 30 action points on operational efficiency, portfolio diversification, smoother lending to small and medium enterprises and strict risk monitoring to avoid such a massive pile-up of bad debts in future

To apply Unsecured Business loan in Ghazaibad Click the link

Share

Leave a Reply

Your email address will not be published. Required fields are marked *