The government on Monday initiated action for removal of Allahabad Bank CEO Usha Ananthasubramanian following the CBI chargesheet in the $2 billion PNB fraud detailing her role. Photo: MintKolkata: State-owned Allahabad Bank on Monday said the Reserve Bank of India (RBI) has asked it to freeze lending after its capital-to-risk weighted assets ratio (CRAR) fell below the mandatory 9% at the end of March. A spokesperson for Allahabad Bank said the management was immediately unable to comment on the development beyond what has been said in the stock market filing. On Friday, Dena Bank, another public sector lender under PCA, said in a regulatory filing that the RBI had restricted the bank from “assuming fresh credit exposure and recruitment of staff”. In a separate statement issued on Monday, Allahabad Bank said its board will be meeting on Tuesday to discuss the removal of its chief executive officer and managing director Usha Ananthasubramanian, although it had not received any “formal communication” yet to divest her off all powers.

Source: Mint May 14, 2018 15:11 UTC