Yak Rbi Bars Dena Banking Concern From Hiring Staff & Lending

The Reserve Bank of Bharat (RBI) has barred the acre run lender Dena Bank from extending fresh credit inwards persuasion of deteriorating fiscal health due to mounting Non-Performing Assets (NPAs). In addition, the lender has too been barred from recruiting staff.

This agency the depository fiscal establishment tin disburse loans for the credit facilities already sanctioned, but cannot sanction fresh loans.

RBI had inwards May terminal twelvemonth initiated prompt corrective activity against Dena Bank in addition to imposed sure enough restrictions, inwards persuasion of high internet NPA in addition to negative Return on Assets.

Dena Bank today reported a internet loss of Rs 1,225 crore for the 4th quarter ended March 31, 2018. This loss was much wider than the internet loss of Rs 575 crore recorded inwards the same quarter terminal year.

Though several banks are nether the PCA framework currently, Dena Bank is the get-go lender to bring fresh lending curbed. RBI may determine to elevator the restrictions inwards example the depository fiscal establishment improves profitability in addition to reduces bad loans.

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