RBI puts fresh lending restrictions on Allahabad Bank

Recently, the RBI not only debarred Dena Bank from extending fresh credit in view of the deteriorating financial health, but also debarred the lender from recruiting staff

After the Reserve Bank of India (RBI) debarred Dena Bank from fresh lending, it has placed additional restrictions on Kolkata-based Allahabad Bank, which is  under prompt corrective action (PCA) since January this year. The regulator has debarred the bank from high-risk lending and raising high-cost deposits.

The RBI has advised the bank to restrict expansion of risk-weighted assets, reduce exposure to unrated and high-risk advances, Allahabad Bank said in a regulatory filing to the stock exchanges on Monday.

The RBI has also