 "IDBI Bank first under corrective action plan")
IDBI Bank has become the first case to be put under the revised prompt corrective action (PCA) regime, due to high level of net non-performing assets (NPAs) and negative returns on assets.
Under PCA, the Reserve Bank of India (RBI) will clamp restrictions on business activities, including curbs on lending and branch expansion. This is done to bring an ailing bank on the recovery path.
IDBI Bank would have to take mandatory corrective actions such as raising capital levels and restricting dividend payment, among others. In extreme cases, the ailing public sector lender might have to put restrictions
Under PCA, the Reserve Bank of India (RBI) will clamp restrictions on business activities, including curbs on lending and branch expansion. This is done to bring an ailing bank on the recovery path.
IDBI Bank would have to take mandatory corrective actions such as raising capital levels and restricting dividend payment, among others. In extreme cases, the ailing public sector lender might have to put restrictions
