RBI initiates Prompt Corrective Action against Bank of Maharashtra as NPA mounts
    RBI initiates Prompt Corrective Action against Bank of Maharashtra as NPA mounts - Economic Times
    For the year ended March 2017, the net non-performing assets (NPAs) of the bank rose to 11.76 per cent, while return on assets declined to (-) 1.09 per cent.

    MUMBAI: The Reserve Bank of India has initiated prompt corrective action on Bank of Maharashtra placing restriction on the banking activities.However, RBI also added this action will not have any material impact on the performance if the banks and will contribute to improve the internal controls of the bank and improvement in its asset quality , profitability and efficiency.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 regulator clarified that the PCA is triggered so that it allows the regulator to engage closely with the bank's management in order to improve their financial health.Rating agency ICRA has stated that 16 government owned banks out of 21 (excluding SBI associates) and two out of 16 private banks might come under the PCA framework

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