JOIN USBank of Maharashtra (BoM) has said that it has been placed under prompt corrective action (PCA) by the Reserve Bank of India (RBI).
The RBI vide its letter dated June 15, 2017 has initiated PCA for Bank of Maharashtra in view of high net non performing assets (NPAs). This action will not have any material impact on the performance of the bank and will contribute to improve the internal controls of the bank and improvement in asset quality, profitability and efficiency, the bank intimated the exchanges.
BoM’s net NPAs had nearly doubled for the quarter ended March 31, 2017 at 11.76% compared with 6.35% in the same period previous fiscal. The bank’s net NPAs for the sequential quarter (Q3FY17) stood at 10.67%. On an absolute basis, the bank had reported net NPAs of Rs 11,229.56 compared with Rs 6832.03 crore in Q4FY16 and 10,358.92 crore in the sequential quarter. BoM is the fifth bank to be placed under PCA by RBI.
Other banks, which, incidentally are also public sector banks, include IDBI Bank, Dena Bank, Uco Bank and Central Bank of India.