Bank of Maharashtra put under RBI 'corrective action' due to bad loans | Reuters

MUMBAI The Reserve Bank of India (RBI) has initiated 'prompt corrective action' for state-run Bank of Maharashtra Ltd because of its high level of bad loans, the lender said in a stock exchange filing on Saturday.The mid-sized institution is the fifth state-run lender to come under curbs since the RBI tightened the corrective action framework in April to help cut the $150 billion of troubled loans afflicting banks. Bank of Maharashtra said the corrective actions will not have any material impact on its performance, but will help strengthen its internal controls, and improve asset quality and profitability. The bank's net non-performing assets (NNPA) ratio rose to 11.76 percent at the end of March, from 10.67 percent at end-December

Reuters June 17, 2017 22:15:04 IST
Bank of Maharashtra put under RBI 'corrective action' due to bad loans
| Reuters

Bank of Maharashtra put under RBI corrective action due to bad loans
 Reuters

MUMBAI The Reserve Bank of India (RBI) has initiated "prompt corrective action" for state-run Bank of Maharashtra Ltd because of its high level of bad loans, the lender said in a stock exchange filing on Saturday.The mid-sized institution is the fifth state-run lender to come under curbs since the RBI tightened the corrective action framework in April to help cut the $150 billion of troubled loans afflicting banks.

Bank of Maharashtra said the corrective actions will not have any material impact on its performance, but will help strengthen its internal controls, and improve asset quality and profitability.

The bank's net non-performing assets (NNPA) ratio rose to 11.76 percent at the end of March, from 10.67 percent at end-December.

Under RBI rules, prompt corrective action is triggered if a bank's NNPA ratio crosses 6 percent.Lenders with an NNPA ratio of more than 9 percent fall in the "risk threshold 2" category, and can be asked by the regulator to restrict branch expansion and make higher provisions on sour loans, among other curbs. (Reporting by Devidutta Tripathy; Editing by Dale Hudson)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Pulitzer Prize-winning photojournalist Danish Siddiqui killed in Afghanistan: Politicans, journalists pay tributes
India

Pulitzer Prize-winning photojournalist Danish Siddiqui killed in Afghanistan: Politicans, journalists pay tributes

The Pulitzer prize winner, who was in Kandahar covering operations against Taliban, was killed when he was riding along with the Afghan Special Forces

Indian photojournalist Danish Siddiqui killed during assignment in Afghanistan's Kandahar province
India

Indian photojournalist Danish Siddiqui killed during assignment in Afghanistan's Kandahar province

Siddiqui had also covered the 2020 Delhi riots, COVID-19 pandemic, Nepal earthquake in 2015 and the protests in Hong Kong

Danish Siddiqui's passing is a reminder of the high price one pays for showing the truth
India

Danish Siddiqui's passing is a reminder of the high price one pays for showing the truth

Danish's photographs were not just documentation, but the work of someone who went down to eye-level, as they say in photographic parlance.