The Reserve Bank of India (RBI) has imposed certain restrictions on Corporation Bank on carrying out banking activities as its share of bad loans rose sharply. The RBI has triggered prompt corrective action (PCA) against it in view of high non-performing loans and requirement to raise capital.
This makes Corporation Bank eighth bank to face restriction in a span of 10 months. Corporation Bank’s net non-performing loans cross 10% and it reported losses of Rs 1035 crore in the second quarter ending 2017.
Static/Current Takeaways Important for RBI Assistant Mains 2017 Exam-
PCA- Prompt Corrective Action.
- Once PCA is triggered the bank faces restrictions on expenses such as opening branches, recruiting staff and giving increments to employees.
- Corporation Bank Managing Director & CEO- Jai Kumar Garg, Headquarter- Mangalore, Karnataka.
- Corporation Bank came into being as Canara Banking Corporation (Udipi) Limited, on 12th March, 1906.