Banks in PCA lean on retail and recovery, seek relaxation in lending norms

Seek relaxation in lending norms, particularly risk-weighted assets

The 11 state-run banks undergoing prompt corrective action (PCA) are likely to submit individual plans on Friday with a common theme running that they would be focusing on growing their retail book and pare down their legacy corporate loans.

They cannot lend big money to the corporate sector anyway as PCA framework imposes lending restrictions that eliminates chances of giving such loans. For example, Allahabad Bank said in its filing on May 14 that the RBI has asked it to restrict expansion of risk-weighted assets (RWA), reduce exposure to un-rated and high risked advances, restrict creation of non-banking assets, and stop