Rising NPAs put Dena Bank under corrective action plan

The bank would share a turnaround strategy plan with the govt for infusion of additional capital

The Reserve Bank of lndia placed ailing public sector lender Dena Bank under prompt corrective action (PCA), in view of high net non-performing assets and negative return on assets (RoA).

PCA would mean taking mandatory corrective actions such as raising capital levels, restricting dividend payments and curbing branch expansions, among others. In extreme cases, the bank might have to put restrictions on management compensation to come out of the PCA framework. Other ailing public sector banks already under PCA include Mumbai-based IDBI Bank and Chennai-based Indian Overseas Bank (IOB). Dena Bank said in a notice to the BSE this action would