The IDBI bank has been put under the scanner by the Reserve Bank of India. The apex bank also initiated a Prompt Corrective Action against it, said a news report.
The IDBI bank has been put under the scanner by the Reserve Bank of India. The apex bank also initiated a Prompt Corrective Action against it, said a news report.
The move that will place various restrictions on the lender including on fresh loans and dividend distribution.
"This is to inform that RBI (on May 5) has initiated Prompt Corrective Action for IDBI Bank in view of high net NPA and negative RoA (return on assets)," IDBI bank said in its BSE filing post market hours on Tuesday.
As reported by a national news agency, the gross non-performing assets (NPAs) or bad loans of the bank shot up by 80% to Rs 35,245 crore and it booked a loss Rs 2,255 crore for the December quarter and its RoA also declined to -2.32 at the end of the third quarter of 2016-17.
“This action will not have any material impact on the performance of the bank and will contribute to improving the internal controls of the bank and improvement in its activities,” said the IDBI bank.
Meanwhile, the stock of IDBI Bank Limited was trading down by over 2% on the BSE on Wednesday.
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