Dena Bank kept under the Prompt Corrective Action (PCA) by the RBI

Highlights:

  • The Reserve Bank of India (RBI) on 12 May 2018 directed Dena Bank not to issue any fresh loans and hire new personnel as it was brought under the Prompt Corrective Action (PCA) mechanism. 
  • This was done as the bank’s asset quality continues to be worst.
  • The public sector bank was kept under the PCA mechanism due to worsening asset quality.
  • Already, there are 11 banks, out of 21 state-owned banks, under the PCA of the Reserve Bank because of their weak financials.