Lakhshmi Vilas Bank Put Under Prompt Corrective Action
September 30, 2019
The central bank RBI has put Lakhshmi Vilas Bank under prompt corrective action (PCA) framework. This raises questions on the proposed merger of the bank with Indiabulls Housing Finance Ltd.
This Saturday, RBI issued a regulatory filing that said that it has taken the move in light of a large number of bad loans, negative return on assets (RoA), and insufficient capital adequacy ratio. The action was based on RBI’s risk-based supervision for the financial year 2018-19.