RBI puts curbs on Dena Bank

New Delhi, May 12

The Reserve Bank of India (RBI) has restricted Dena Bank from assuming fresh credit exposure and the recruitment of staff in continuation with the steps being taken under the mechanism of Prompt Corrective Action (PCA) initiated last year due to the high non-performing assets (NPAs) of the bank.

Dena Bank had on Friday reported widening of its net loss to Rs 1,225.42 crore in the March quarter on mounting bad loans and higher provisioning to cover them. The net loss stood at Rs 575.26 crore in the January-March quarter of 2016-17. In a filing with stock exchanges, Dena Bank said, “The RBI, vide their letter dated May 31, 2017, has initiated Prompt Corrective Action for Dena Bank and imposed certain restrictions in view of high Net NPA and negative Return on Assets (RoA)”. — TNS