RBI initiates action against Bank of Maharashtra as bad loans mount
By Express News Service | Published: 18th June 2017 12:32 AM |
NEW DELHI: The Reserve Bank has initiated Prompt Corrective Action (PCA) against Pune-based Bank of Maharashtra (BoM) in view of high level of bad loans and negative return on assets. With this, BoM is the sixth state-owned lender to be put under the PCA.
The central bank has initiated PCA for the bank in view of high net NPA, BoM said in a BSE filing on Saturday.
“This action will not have any material impact on performance of the bank and will contribute to improve the internal controls of the bank and improvement of its asset quality, profitability and efficiency,” it said.
For March-end 2017, the net NPAs of the bank rose to 11.76 per cent, while return on assets declined to (-) 1.09 per cent. Subsequently, the bank reported a loss of Rs 455.4 crore for the fourth quarter, while for entire fiscal 2016-17 booked loss of Rs 1,372 crore.