RBI announces Prompt Corrective Action against Central Bank of India

Reserve Bank of India, on June 14, 2017, announced prompt corrective action against (PCA) Central Bank of India (one of the oldest and largest commercial banks in India) after looking at the Bank’s large number of net non-performing assets and its negative return on assets.
 
When it is found that any bank breaches certain regularity requirements like the return on asset, minimum capital, and quantum of NPA, then PCA is initiated. RBI took this action in order to assess, monitor, control and to take the corrective actions on the weak banks, which are not being able to resolve these problems.
 
As per the Central Bank of India, the corrective action taken by the RBI will help their bank in improving the overall performance.

Central Bank of India reported NPA of 10.20 percent, as of end-March, which is an increase from 7.36 per cent a year ago.
 
 The bank also posted net loss of Rs 24.39 billion for fiscal year ended March 2017 and in the previous year as well the bank has registered a loss of Rs 14.18 billion
 
Earlier, the RBI had taken prompt corrective action against IDBI Bank, Dena Bank, UCO Bank after observing their high bad loans and their poor returns on assets.

On June 15, 2017, Central Bank of India is trading at Rs 99.65, down by 1.97 per cent on BSE at 10:20 hours. It opened at Rs 101.90, while on Wednesday it closed at Rs 101.65.