associate sponsors

Llyod
HDFC

UCO Bank says RBI begins corrective action over high bad loans | Reuters

MUMBAI The Reserve Bank of India (RBI) has initiated "prompt corrective action" for state-run UCO Bank over its high bad loans and negative return on assets, UCO said on Friday.UCO, 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.

It is the second state-run lender to come under the curbs of the Reserve Bank of India after the regulator revised the so-called prompt corrective action framework last month, tightening thresholds around bad loans.Earlier on Friday, UCO reported a narrowing of its quarterly loss and bad-loan ratio. It had net non-performing loans (NPLs) of 8.94 percent at the end of March.

Under RBI rules, prompt corrective action is triggered if a bank's net NPL ratio crosses 6 percent.

IDBI Bank, another state-run lender, said on Tuesday it was facing corrective action by the regulator.Analysts say more lenders could come under central bank curbs as regulators strive to clean up bad loans of $150 billion in the sector. (Reporting by Abhirup Roy and Devidutta Tripathy; Editing by Edmund Blair)

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


Updated Date: May 12, 2017 21:55 PM

Also Watch

Watch: The true stories from Dharavi that inspired Rajinikanth's Kaala
  • Thursday, March 8, 2018 Watch: Cyrus Khan talks about Parkour, jumping across walls and why he hates sitting
  • Thursday, May 31, 2018 Unwind: India's basketball sensation Amjyot Singh has his eyes set on becoming an NBA regular
  • Monday, May 28, 2018 First Day First Showsha — Review of Solo: A Star Wars Story in 10 questions
  • Saturday, May 19, 2018 Social Media Star: Rajkummar Rao and Bhuvan Bam open up about selfie culture, online trolls

Also See



{if $hideJSforEU != 'yes'} {/if}