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Bad Loans Issue: RBI Initiates Prompt Corrective Actions on Central Bank of India
June 19, 2017
Owing to the increasing Non-Performing Assets (NPAs) and negative Return on Assets (ROA) by the Central Bank of India, RBI has initiated a Prompt Corrective Action (PCA) plan on the lender. This would make it third on the list, as IDBI and Dena Bank were also provided with the same action in the recent past.
For fiscal 2016-17, the Central Bank had reported a net loss of Rs. 2,439 crores, thus surpassing 2015-16’s net loss of Rs. 1,418 crores.
With PCA in effect, the Central Bank of India will receive restrictions on distributing dividends, branch expansion, etc.
