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Friday, 16 June 2017

RBI places restrictions on banking activities of Central Bank of India

The Reserve Bank of India (RBI) has placed Central Bank of India under prompt corrective action  (PCA) which puts restricts on banking activities such as from lending, hiring and expanding branches.

According to the RBI, the PCA has been triggered in view of negative return on assets and high ratio of bad loans. So far, RBI has triggered PCAs for four banks – IDBI Bank, UCO Bank, Dena Bank and Indian Overseas Bank. The PCA was initiated on Central Bank of India since it reported losses for two consecutive years, had negative return on assets and its share of bad loans has crossed 6%. Central Bank has reported loss of Rs 2439 crore for fiscal year 2016-17.

Banking Takeaways from above news-

  • Shri. Rajeev Rishi is the Chairman & Managing Director of Central Bank of India.
  • CBI is Headquartered in Mumbai.

Source- The Financial Express

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