UCO bank came under the curbs of the RBI after the regulator revised the so-called prompt corrective action framework last month. Pradeep Gaur/MintMumbai: State-run UCO Bank said on Friday that the Reserve Bank of India (RBI) has initiated “prompt corrective action” for over its high bad loans and negative return on assets, although its loss narrowed in the fiscal fourth quarter. It is the second public sector lender, after IDBI Bank Ltd, to come under the curbs of RBI after the regulator tightened thresholds around bad loans last month. Under RBI rules, prompt corrective action is triggered if a bank’s net non-performing asset (NPA) ratio crosses 6%. UCO Bank, in a filing to the stock exchanges, said the action “will not have any material impact” on its performance, but did not give details of the corrective action.

Source: Mint May 12, 2017 16:03 UTC