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RBI Brings United Bank of India Under Correction Action Framework
December 26, 2017
Realizing that the financial condition of public sector United Bank of India (UBI) is worsening due to massive bad loans, the Reserve Bank of India (RBI) has brought it under the Prompt Correction Action (PCA) initiative which will help it to raise capital and implement various cost control measures.
In light of the weak status that the lender has got itself into, the central bank has asked it to refrain from disbursing the profits to its shareholders.
In a recent statement, UBI said that it will focus on the diversification of credit portfolio, capital augmentation, and a few other measures to get back on track.
