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RBI begins prompt corrective action against Bank of India; shares dip 5%

BoI had a net non-performing assets ratio of 6.47% as of end-September


RBI, Reserve Bank of India
A woman walks past the Reserve Bank of India (RBI) head office in Mumbai | Photo: Reuters

said on Wednesday that the Reserve has initiated 'prompt corrective action' (PCA) against the lender over high

High net (NPA), insufficient common equity tier 1 (CET1) capital and (ROA) for two consecutive years have prompted the action, the bank said in a statement.

The issues a to spur lenders to deal with bad debts, as one of the measures intended to tackle the menace of bad debt that has plagued Indian banks.

The bank had a net ratio of 6.47 per cent as of end-September.

Shares of the bank dropped as much as 5.4 per cent to 171.45 rupees in afternoon trade in a Mumbai market that was trading 0.17 per cent higher.

First Published: Wed, December 20 2017. 16:23 IST