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Dena Bank Under Scanner as RBI Tackles Bad Loans
June 14, 2017
The Reserve Bank of India has initiated prompt corrective action against Dena Bank to tackle the growing problem of bad loans in the country. This will impose multiple restrictions on the lender, including dividend distribution and fresh loans. However, this is not the first time the central bank has taken such a bold step. Indian Overseas Bank, IDBI Bank, and UCO Bank were the three other financial institutions that met with a similar fate in the recent past.
As a result of rising bad loans, Dena Bank had reported a net loss of Rs. 575.26 crore for the March quarter, which is a considerable increase from last year’s Rs. 326.38 crore.
