Dena Bank had on Friday reported widening of its net loss to Rs1,225.42 crore in the March quarter on mounting bad loans and higher provisions to cover them. Photo: Priyanka Parashar/MintNew Delhi: The Reserve Bank of India (RBI) has initiated prompt corrective action against Dena Bank in view of high non-performing assets (NPAs), restricting the bank from giving new loans and new hiring. “Reserve Bank of India, vide their letter dated May 31, 2017, has initiated Prompt Corrective Action for Dena Bank and imposed certain restrictions, in view of high Net NPA and negative RoA ( return on assets),” the bank said in a regulatory filing. Net NPAs were also up at 11.95% (Rs7,838.78 crore) from 10.66% (Rs7,735.12 crore). The central bank has initiated similar action against other public sector banks, including IDBI Bank Ltd, Indian Overseas Bank and UCO Bank before this.

Source: Mint May 12, 2018 05:48 UTC