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Monday, 19 June 2017

RBI initiates Prompt Corrective Action against Bank of Maharashtra as NPA mounts


The Reserve Bank of India has initiated prompt corrective action (PCA) on Bank of Maharashtra placing a restriction on the banking activities. This RBI has said that the action is taken on the bank in view of the high level of bad loans.

This is the sixth bank to be placed under PCA by the RBI and of this five banks were placed under PCA in the last three months. RBI has initiated PCA on Central Bank of India, IDBI Bank, UCO Bank, Dena Bank and Indian Overseas Bank. The move will restrict the bank from announcing the dividend, opening branches, hiring and giving loans to companies rated below investment grade.

Banking Takeaways from Above News-

  • The Reserve Bank of India was established on April 1, 1935, in accordance with the provisions of the Reserve Bank of India Act, 1934.
  • RBI was nationalized in 1949.
  • R. P. Marathe is the Managing Director & CEO of Bank of Maharashtra.
  • The Head Office of BoM is in Pune, Maharashtra.

Source- The Economic Times

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