The central bank has put the bank under PCA in view of high NPAs and negative return on assets.
Due to high bad loans and negative return on assets, public sector Central Bank of India has been placed under the Reserve Bank of India's watchlist on Prompt Corrective Action (PCA).
The central bank has put the bank under PCA in view of high NPAs (non-performing assets) and negative return on assets (RoA).
Banks such as IDBI Bank, Indian Overseas Bank, UCO Bank and Dena Bank have already come under the PCA. This step has been taken to put breaks on fresh loan disbursal.
The corrective measures arising out of the PCA will help in improving overall performance of the bank, it said.
NPAs jumped to 10.20 per cent of net advances for the fiscal from 7.36 per cent year ago.
Thursday, June 15, 2017