(PTI)
After Dena Bank, the Reserve Bank now is likely to impose certain restrictions on couple of more public sector lenders under the Prompt Corrective Action (PCA) mechanism due to worsening asset quality, a source said.
In view of mounting non-performing assets (NPAs), the RBI yesterday directed Dena Bank not to issue any fresh loans and hire new personnel. Already, there are 11 banks, out of 21 state-owned banks, under the PCA of the Reserve Bank because of their weak financials. One or two more banks may face PCA like Dena Bank if their quarterly numbers indicate further erosion of capital and unabated rise in net NPAs, a senior official of a public sector bank said.
