Why RBI putting state-run banks under PCA does not panic depositors

A panic, in fact, is in the stock market, where the shares of these banks have been clobbered; this relative tranquility is a contrast with the developments in the undivided UTI of 2001

If the Reserve Bank of India puts Punjab National Bank (PNB), along with Canara Bank and Union Bank of India, under the so-called Prompt Corrective Action (PCA), the financial sector equivalent of intensive care unit, close to 14 per cent of the total banking credit could be potentially impacted. Of these, PNB accounted for 5.49 per cent as at the end of financial year 2016-17.

Of more salience is the additional credit these banks offered during the financial year – to the tune of Rs 435.47 billion, or about a fifth of the total incremental credit from the sector. It